Net markdowns—
60,000 Sales revenue
— 1,170,000
11. 10. 12. Which of the following is true of normal shortages? 13. Under the lower-of-cost-or-market method, the replacement cost of an inventory item would be used as the designated market value 14. Which of the following is not a common disclosure for inventories? 15. 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 were $ 2,000,000. December 31 inventory at year-end prices was $ 286,720, and the price index was 112.