1.

Given the following data, by how much would taxable income change if periodic LIFO is used rather than periodic FIFO?

Select one:

a. Increase by $7,000

b. Decrease by $7,000

c. Increase by $8,500

d. Decrease by $8,500

2.

During periods of rising prices with frequent purchases and sales, a perpetual inventory system would generally result in a different dollar amount of ending inventory than a periodic inventory system under which of the following inventory cost flow methods?

Select one:

a. FIFO, but not LIFO

b. LIFO, but not FIFO

c. Both FIFO and LIFO

d. Neither FIFO nor LIFO

3.

The Blotto Company made the following two errors in counting ending inventory:

• Understated 12/31/12 inventory by $2,000
• Understated 12/31/13 inventory by $1,000

The combination of these two errors will cause:

Select one:

a. 12/31/13 Retained Earnings to be understated by $3,000

b. 2013 Cost of Goods Sold to be overstated by $3,000

c. 2014 Beginning Inventory to be overstated by $1,000

d. 2014 Cost of Goods Sold to be overstated by $1,000

e. 2013 Net Income to be overstated by $1,000

4.

Given the following information for the Albuquerque Company: Using dollar-value LIFO, the 12/31/18 inventory for the balance sheet is approximately:

Select one:

a. $97,273

b. $111,364

c. $108,333

d. $99,318

e. $95,833

5.

Given the following information for an inventory item of the Scottsdale Corporation: Using the LCM Rule, the proper inventory amount for the balance sheet is:

Select one:

a. $98

b. $104

c. $111

d. $117

e. $124

Given the following data by how much would taxable income change it periodic UFO is used rather than periodic FIFO? Begining Inventory Purchases Unit Sol 2.200 units of $25 400 units a $30 1700 Select one: a. Increase by $7,000 Ob Decrease by $7,000 Increase by $8.500 d. Decrease by $8.500 During periods of rising prices with frequent purchases and sales a perpetual inventory system would generally result in a different dollar amount of ending inventory than a periodic inventory system under which of the following inventory cost flow methods? Select one a FIFO, but not LIFO b. O, but not FIFO Both FIFO and UFO d. Neither FIFO nor UFO The Blotto Company made the following two errors in counting ending inventory: Understated 12/31/12 inventory by $2,000 Understated 12/31/13 inventory by $1,000 The combination of these two errors will cause: Select one: O a. 12/31/13 Retained Earnings to be understated by $3,000 b. 2013 Cost of Goods Sold to be overstated by $3,000 O c.2014 Beginning Inventory to be overstated by $1,000 O d. 2014 Cost of Goods Sold to be overstated by $1,000 Oe. 2013 Net Income to be overstated by $1,000 Given the following information for the Albuquerque Company: Date 12/31/16 12/31/17 12/31/18 Inventory at end- of-year prices $75,000 $90,000 $115,000 Price Index 100 110 120 Using dollar-value LIFO, the 12/31/18 inventory for the balance sheet is approximately: Select one: O a. $97,273 O b. $111,364 O c. $108,333 O d. $99,318 O e. 595,833 Given the following information for an inventory item of the Scottsdale Corporation: Cost Replacement Cost Estimated Sales Price Normal Profit Cost of Completion $104 $ 98 $130 $ 6 $ 13 n Using the LCM Rule, the proper inventory amount for the balance sheet is: Select one: O a. $98 O b. $104 O c. $111 O d. $117 O e. $124