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Deck 21: Appendix D: Retail Inventory Method
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Question
Flynn Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:
If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost to retail ratio?
A) $177,500 ÷ $250,000
B) $177,500 ÷ $258,500
C) $175,000 ÷ $260,000
D) $177,500 ÷ $248,500
If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost to retail ratio?A) $177,500 ÷ $250,000
B) $177,500 ÷ $258,500
C) $175,000 ÷ $260,000
D) $177,500 ÷ $248,500
Question
The following data concerning the retail inventory method are taken from the financial records of Stone Company.
-The ending inventory at retail should be
A) $74,000.
B) $60,000.
C) $64,000.
D) $42,000.
-The ending inventory at retail should be
A) $74,000.
B) $60,000.
C) $64,000.
D) $42,000.
Question
Trent Co. uses the retail inventory method. The following information is available for the current year.
-If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of
A) $300,000 and $430,000.
B) $300,000 and $428,000.
C) $373,000 and $550,000.
D) $378,000 and $552,000.
-If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of
A) $300,000 and $430,000.
B) $300,000 and $428,000.
C) $373,000 and $550,000.
D) $378,000 and $552,000.
Question
Trent Co. uses the retail inventory method. The following information is available for the current year.
-The ending inventory at retail should be
A) $160,000.
B) $150,000.
C) $144,000.
D) $140,000.
-The ending inventory at retail should be
A) $160,000.
B) $150,000.
C) $144,000.
D) $140,000.
Question
Trent Co. uses the retail inventory method. The following information is available for the current year.
-The approximate cost of the ending inventory by the conventional retail method is
A) $95,900.
B) $94,920.
C) $98,000.
D) $102,480.
-The approximate cost of the ending inventory by the conventional retail method is
A) $95,900.
B) $94,920.
C) $98,000.
D) $102,480.
Question
At December 31, 2008, the following information was available from Goff Co.'s accounting records:
Sales for the year totaled $1,050,000. Markdowns amounted to $ 10,000. Under the lower-of-cost-or-market method, Goff's inventory at December 31, 2008 was
A) $294,000.
B) $245,000.
C) $252,000.
D) $238,000.
Sales for the year totaled $1,050,000. Markdowns amounted to $ 10,000. Under the lower-of-cost-or-market method, Goff's inventory at December 31, 2008 wasA) $294,000.
B) $245,000.
C) $252,000.
D) $238,000.
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Deck 21: Appendix D: Retail Inventory Method
1
Flynn Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:
If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost to retail ratio?
A) $177,500 ÷ $250,000
B) $177,500 ÷ $258,500
C) $175,000 ÷ $260,000
D) $177,500 ÷ $248,500
If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost to retail ratio?A) $177,500 ÷ $250,000
B) $177,500 ÷ $258,500
C) $175,000 ÷ $260,000
D) $177,500 ÷ $248,500
$177,500 ÷ $258,500
2
The following data concerning the retail inventory method are taken from the financial records of Stone Company.
-The ending inventory at retail should be
A) $74,000.
B) $60,000.
C) $64,000.
D) $42,000.
-The ending inventory at retail should be
A) $74,000.
B) $60,000.
C) $64,000.
D) $42,000.
$60,000.
3
Trent Co. uses the retail inventory method. The following information is available for the current year.
-If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of
A) $300,000 and $430,000.
B) $300,000 and $428,000.
C) $373,000 and $550,000.
D) $378,000 and $552,000.
-If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of
A) $300,000 and $430,000.
B) $300,000 and $428,000.
C) $373,000 and $550,000.
D) $378,000 and $552,000.
$378,000 and $552,000.
4
Trent Co. uses the retail inventory method. The following information is available for the current year.
-The ending inventory at retail should be
A) $160,000.
B) $150,000.
C) $144,000.
D) $140,000.
-The ending inventory at retail should be
A) $160,000.
B) $150,000.
C) $144,000.
D) $140,000.
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5
Trent Co. uses the retail inventory method. The following information is available for the current year.
-The approximate cost of the ending inventory by the conventional retail method is
A) $95,900.
B) $94,920.
C) $98,000.
D) $102,480.
-The approximate cost of the ending inventory by the conventional retail method is
A) $95,900.
B) $94,920.
C) $98,000.
D) $102,480.
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6
At December 31, 2008, the following information was available from Goff Co.'s accounting records:
Sales for the year totaled $1,050,000. Markdowns amounted to $ 10,000. Under the lower-of-cost-or-market method, Goff's inventory at December 31, 2008 was
A) $294,000.
B) $245,000.
C) $252,000.
D) $238,000.
Sales for the year totaled $1,050,000. Markdowns amounted to $ 10,000. Under the lower-of-cost-or-market method, Goff's inventory at December 31, 2008 wasA) $294,000.
B) $245,000.
C) $252,000.
D) $238,000.
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Unlock for access to all 6 flashcards in this deck.
Unlock Deck
k this deck
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Unlock for access to all 6 flashcards in this deck.
