Q16. If a firm has a first in, first out (FIFO) inventory of 9,000 and a last in, first out (LIFO) inventory of 6,500, what is the value of the LIFO reserve assuming a 40% tax rate? A) $1,500. B) $2,500. C) $1,000
Q17. The Orchard Supply Company uses last in, first out (LIFO) inventory valuation. Orchard Supply had a cost of goods sold (COGS) of $1 million for the period. The inventory at the beginning of the period was $500,000 and the inventory at the end of the period was $600,000. Orchard Supply's LIFO reserve was $100,000 at the end of the previous year and $200,000 at the end of the current year. What is Orchard Supply's COGS according to first in, first out (FIFO) inventory valuation? A) $900,000. B) $800,000. C) $1.1 million.
Q18. A financial analyst could adjust 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 assets. B) deducting the LIFO reserve from the current asset. C) adding the LIFO reserve to the current liabilities.
Q19. Granulated Corp. uses the last in, first out (LIFO) inventory cost flow assumption. Selected information from Granulated’s financial statements for the years ended December 31, 20X3 and 20X4 was as follows (in $): | 20X3 | 20X4 | Beginning Inventory | 4,375,000 | 5,525,000 | Purchases | 10,200,000 | 11,300,000 | Ending Inventory | 5,525,000 | 6,100,000 | Beginning LIFO Reserve | 825,000 | 975,000 | Ending LIFO Reserve | 975,000 | 1,125,000 |
If Granulated changed from LIFO to first in, first out (FIFO) for 20X4, Granulated’s cost of goods sold (COGS) in 20X4 under FIFO would be: A) $10,575,000. B) $10,325,000. C) $11,850,000.
Q20. 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) $77,000. B) $83,000. C) $91,000.
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发表于 2009-1-19 09:58
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