Q11. Given the following data: - Beginning LIFO Reserve $2,300
- Cost of Goods Sold (COGS) using LIFO $6,100
- COGS using FIFO of $4,300
What is the Ending LIFO reserve? A) $500. B) $4,100. C) $2,800.
Q12. The following information has been gathered about a firm: - LIFO inventory = $10,000
- Beginning LIFO reserve = $2,500
- Ending LIFO reserve = $4,000
- LIFO cost of goods sold = $15,000
- LIFO net income = $1,500
- Tax rate is 40%
What is the FIFO COGS? A) $16,500. B) $13,500. C) $11,000.
Q13. The formula to convert an ending inventory value from the LIFO to the FIFO method is to: A) FIFO inventory = LIFO inventory + LIFO reserve. B) FIFO inventory = LIFO inventory − LIFO reserve. C) FIFO inventory = LIFO inventory × LIFO reserve.
Q14. The Baker Company uses the last in, first out (LIFO) inventory valuation method and reported its inventory at $200,000 and its cost of goods sold (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 for ending inventory and cost of goods sold if it were to use the first in, first out (FIFO) method? Ending Inventory COGS
A) $230,000 $525,000 B) $170,000 $525,000 C) $230,000 $475,000
Q15. Given the following inventory information about the Buckner Company: - Year-end last in, first out (LIFO) inventory of $6,500.
- Year-end LIFO reserve of $2,500.
- The current year's LIFO cost of goods sold (COGS) is $15,000.
- After tax income is $1,600.
- The previous year's LIFO reserve was $2,000.
How much higher would the firm's retained earnings be on a first in, first out (FIFO) basis if the firm's tax rate is 40%? A) $1,500. B) $2,100. C) $1,800.
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发表于 2009-1-19 09:56
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