2)On July 10, 2016, Johnson Corporation signed a purchase commitment to purchase inventory for $224,000 on or before February 15, 2017. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2017, and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $234,000. The market price of the inventory on December 31, 2016, was $192,000. The company uses a perpetual inventory system.

At what amount will Johnson record the inventory purchased on February 1, 2017?

$234,000

$202,000

$192,000

$224,000

3)Fad City sells novel clothes that are subject to a great deal of price volatility. A recent item that cost $20.70 was marked up $12.70, marked down for a sale by $4.20 and then had a markdown cancellation of $4.40. The latest selling price is:

$33.60.

$37.80.

$24.90.

$32.20.

4)Cloverdale, Inc., uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations:

	Cost	Retail
Beginning inventory and purchases	$324,000	$566,000
Net markups		34,000
Net markdowns		24,000
Net sales		488,000

What amount should be reported as cost of goods sold for the year?

$273,625.

$276,480.

None of these answer choices are correct.

$274,500.

5)Montana Co. has determined its year-end inventory on a FIFO basis to be $640,000. Information pertaining to that inventory is as follows:

Selling price	$620,000
Costs to sell	34,000
Replacement cost	555,000

What should be the reported value of Montanas inventory?

$555,000.

$620,000.

$603,000.

$586,000.