Question

13. Niles Co. has the following data related to inventory Inventory, March 1 Purchase, March 7 Purchase, March 16 Inventory, March 31 400 units 1400 units @S2.00 @S2.30 @ $2.50 280 units 600 units The value assigned to Ending Inventory if Niles uses LIFO is: a. $1,200 b. S1,260 c. $1,380 d. $1,480 14. The following information is given for a specific inventory item: Cost $100 120 32 15 Estimated selling price Cost to complete Selling cost What is the proper inventory value under the lower-of-Cost-or-Net Realizable Value rule? a. $53 b. $73 c. $88 d. $105 15. The 2020 financial statements of Sheridan Company reported a beginning inventory of $85,000, an ending inventory of $125,000, and cost of goods sold of $777,000 for the year. Sheridan's Inventory Turnover for 2020 is a. 5.2 times b. 6.2 times c. 7.4 times d. 9.1 times 5

Answer 1

Answe- 3 value of ending inventory under life method = (400 X $2.) + 200 x $ 2430) = $800 + $ 460 = $1260 : option ® is correct Estimated selling price - cost to completa -selling cost Net realisable value = = $120 - $32 - $15 = $73. cost = $100 . Lower of cost for Net red cable value = lower of $ 73 or $100 = 73 option b is correct cost of goods sold Average inventory. ③ Inventory Turnover ratio = beginning inventory & weg Ending inventory Average inventon $25,000+ $125000 = $105,000 Inventory Turn over ratio = $717,000 $108000 = 7.4 times - Option ' is correct 1