Inventory Management Paper 16

1

Under the retail inventory method:






2

Under the conventional retail method, which of the following are not included in the denominator of the current period cost-to-retail conversion percentage?






3

Under the LIFO retail method, which of the following are not included in the denominator of the cost-to- retail conversion percentage?






4

In determining the cost-to-retail percentage for the current year:






5

Fad City sells novel clothes which are subject to a great deal of price volatility. A recent item which cost $20 was marked up $12, marked down for a sale by $6 and then had a markdown cancellation of $3. The latest selling price is:






6

Harvey’s Junk Jewelry started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2011:
. . . . . . . . . . (cost, retail)
beginning inventory:(15,000; 23,000)
purchases:(49000; 78000)
freight-in: (2500; 0)
purchase returns:(1700; 2600)
net markups:(0; 2000)
net markdowns:(0, 4100)
net sales:(0; 70600)
employee discounts:(0; 700)
The numerator for the current period’s cost-to-retail percentage is:






7

Harvey’s Junk Jewelry started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2011:
. . . . . . . . . . (cost, retail)
beginning inventory:(15,000; 23,000)
purchases:(49000; 78000)
freight-in: (2500; 0)
purchase returns:(1700; 2600)
net markups:(0; 2000)
net markdowns:(0, 4100)
net sales:(0; 70600)
employee discounts:(0; 700)
The denominator for the current period’s cost-to-retail percentage is:






8

Harvey’s Junk Jewelry started business January 1, 2011, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2011:
. . . . . . . . . . (cost, retail)
beginning inventory:(15,000; 23,000)
purchases:(49000; 78000)
freight-in: (2500; 0)
purchase returns:(1700; 2600)
net markups:(0; 2000)
net markdowns:(0, 4100)
net sales:(0; 70600)
employee discounts:(0; 700)
To the nearest thousand, the estimated ending inventory at cost is:






9

Lacy’s Linen Mart uses the retail method to estimate inventories. Data for the first six months of 2011 include: beginning inventory at cost and retail were $60,000 and $120,000, net purchases at cost and retail were $312,000 and $480,000, and sales during the first six months totaled $490,000. The estimated inventory at June 30, 2011, would be:






10

Hawkeye Auto Parts uses the retail method to estimate inventories. Data for the first six months of 2011 include: beginning inventory at cost and retail were $55,000 and $100,000, net purchases at cost and retail were $785,000 and $1,300,000, and sales during the first six months totaled $800,000. The estimated inventory at June 30, 2011, would be:






Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage: