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resalable. In addition, merchandise equaling 15% of sales will
be exchanged for merchandise of equal or greater value. What
amount should Fenn report for net sales in its income
statement for the month of December 2004?
Question 5
During January 2004, Metro Co., which maintains a perpetual
inventory system, recorded the following information
pertaining to its inventory: Under the LIFO method, what
amount should Metro report as inventory at January 31, 2004?
Question 6
Anders Co. uses the moving-average method to determine the
cost of its inventory. During January 2005, Anders recorded
the following information pertaining to its inventory: What
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