答案和详解如下： 21.M J Inc reported COGS of $80,000 for the year under the LIFO inventory valuation method. M J had a beginning LIFO reserve of $8,000 and an ending LIFO reserve of $11,000. The COGS under the FIFO inventory valuation method is: A) $83,000. B) $88,000. C) $91,000. D) $77,000. The correct answer was D) FIFO COGS is reduced when a LIFO reserve is increased. So, COGS = 80,000 - (11,000 - 8,000) = 77,000.
22.A financial analyst could correct the current ratio in which a company uses the LIFO inventory valuation method to the FIFO method by: A) adding the LIFO reserve to the current liabilities. B) adding the LIFO reserve to the current assets. C) deducting the LIFO reserve from the current asset. D) deducting the LIFO reserve from the current liabilities. The correct answer was B) The LIFO reserve increases the inventory value under FIFO and inventory is included in the numerator in the current ratio.
23.A U.S. company uses the LIFO method to value its inventory for their income tax return. For its financial statements prepared for shareholders, the company may: A) use the FIFO or weighted average method. B) use the FIFO method, but must disclose a LIFO reserve. C) use any other inventory method under generally accepted accounting principles (GAAP). D) only use the LIFO method. The correct answer was D) The LIFO conformity rule in the U.S. requires firms to use LIFO for their financial statements if they use LIFO for income tax purposes.
24.The Baker Company uses the LIFO inventory valuation method and reported its inventory at $200,000 and its COGS at $500,000. The company’s LIFO reserve increased from $5,000 to $30,000 during the year. What amounts would the company report if it were to use the FIFO method?
A) $170,000 $525,000 B) $230,000 $475,000 C) $170,000 $475,000 D) $230,000 $525,000 The correct answer was B) Ending inventory under FIFO is equal to INVLIFO + LIFOreserve = 200,000 + 30,000 = 230,000 COGS under FIFO equals COGSL- (LIFOE-LIFOB) =500,000 - (30,000 - 5,000) = 475,000.
25.The formula to convert an ending inventory value from the LIFO to the FIFO method is to: A) FIFO inventory = LIFO inventory times LIFO reserve. B) FIFO inventory = LIFO inventory minus LIFO reserve. C) FIFO inventory = LIFO inventory divided by LIFO reserve. D) FIFO inventory = LIFO inventory + LIFO reserve. The correct answer was D) The formula to convert an ending inventory value from the LIFO to the FIFO method is to FIFO inventory = LIFO inventory + LIFO reserve. | 
发表于 2008-4-14 10:56
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