Q1. The Orchard Supply Company uses LIFO inventory valuation. Orchard Supply had a cost of goods sold of $1 million for the period. The inventory at the beginning of the period was $0.5 million, and the inventory at the end of the period was $0.6 million. Orchard Supply's LIFO reserve was $0.1 million for the previous year and $0.2 million for the current year. What is Orchard Supply's ending inventory according to FIFO inventory valuation?
A) $0.7 million. B) $0.8 million. C) $0.5 million.
Q2. Wallace Lumber uses LIFO and had the following note in its last financial statement: "Wallace Lumber showed a LIFO reserve of $90,000 in 2003 and $86,000 in 2004." Wallace's marginal tax rate is 31%. If Wallace's year-end LIFO inventory balance was $400,000, their inventory based on FIFO would be:
A) $490,000. B) $314,000. C) $486,000.
Q3. If Wallace's LIFO COGS were $70,000, their FIFO COGS would be:
A) $66,000. B) $64,000. C) $74,000.
Q4. Brigham Corporation uses the last-in, first-out (LIFO) method of accounting for inventory. For the year 2005, the following is provided: - Cost of goods sold (COGS): $24,000
- Beginning inventory: $6,000
- Ending inventory: $7,500
- The notes accompanying the financial statements indicate that the LIFO reserve at the beginning of the year was $2,250 and at the end of the year was $6,000
If Brigham had used first-in, first-out (FIFO), the COGS for 2005 would be: A) $20,250. B) $3,750. C) $29,250.
Q5. GR Corporation uses the last-in, first out (LIFO) method of accounting for inventory and $70,000 is reported as cost of goods sold (COGS) on their income statement. However, if GR had used first-in, first-out (FIFO), the COGS would have been $60,000. If the ending LIFO reserve (LR) reported in the financial statements is $40,000, the beginning LIFO reserve is:
A) $50,000. B) $20,000. C) $30,000.
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发表于 2009-1-19 09:54
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