ACC 304 All Assignments ACC 304 All Assignments | Page 172

10.
Which of the following is true of normal shortages?
Under the lower-of-cost-or-market method, the replacement cost of an
inventory item would be used as the designated market value
Which of the following is not a common disclosure for inventories?
The use of a Purchase Discounts account implies that the recorded cost
of a purchased inventory item is its
Hay Company had January 1 inventory of $180,000 when it adopted
dollar-value LIFO. During the year, purchases were $1,080,000 and sales
were $1,800,000. December 31 inventory at year-end prices was
$227,700, and the price index was 110.
What is Hay Company’s gross profit
16. In the double-extension method, the value of the units in
inventory is extended at:
17. Web World began using dollar-value LIFO for costing its
inventory last year. The base year layer consists of $400,000. Assuming
the current inventory at end of year prices equals $552,000 and the
index for the current year is 1.10, what is the ending inventory using
dollar-value LIFO?
18.
RF Company had January 1 inventory of $200,000 when it adopted
dollar-value LIFO. During the year, purchases were $1,200,000 and sales