EX$.07\mathrm{.}210$

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation. Round ratio of cost to retail

price to nearest whole percent.

MC$\mathrm{.}07\mathrm{.}62$

The inventory costing method that reports the earliest costs in ending inventory is

a$.$ FIFO

b$.$ LIFO

c$.$ weighted average cost

d$.$ specific identification

EX$\mathrm{.}07\mathrm{.}196$

During the taking of its physical inventory on December $31,$ Almond Supplies Company incorrectly counted its inventory as $$545,000$ instead of the correct amount of $$554,000.$

Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December $31.$ For those boxes in which you must enter

understatements or negative numbers use a minus sign.

Almond Supplies Company

Amount of Misstatement

Overstatement

$($Understatement$)$

For the year ended

December $31$

Balance Sheet:

Income statement:

$

EX$\mathrm{.}07\mathrm{.}176.$ALGO $($Algorithmic$)$

Beginning inventory, purchases, and sales for an inventory item are as follows: