amount of inventory should Anders report in its January 31 , 2005 , balance sheet ?
Question 7
When the double extension approach to the dollar-value LIFO inventory method is used , the inventory layer added in the current year is multiplied by an index number . Which of the following correctly states how components are used in the calculation of this index number ?
Question 8
Fireworks , Inc . had an explosion in its plant that destroyed most of its inventory . Its records show that beginning inventory was $ 40,000 . Fireworks made purchases of $ 480,000 and sales of $ 620,000 during the year . Its normal gross profit percentage is 25 %. It can sell some of its damaged inventory for $ 5,000 . The insurance company will reimburse Fireworks for 70 % of its loss . What amount should Fireworks report as loss from the explosion ?
Question 9
When the dollar-value LIFO ( DV LIFO ) retail method is used , what is the first step in the calculation ?
Question 10
Smith Co . has a checking account at Small Bank and an interest-bearing savings account at Big Bank . On December 31 , year 1 , the bank reconciliations for Smith are as follows : What