Reference no: EM132576130
The Constance Corporation's inventory at December 31, 2021, was $134,000 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following:
- Merchandise costing $24,000, shipped f.o.b shipping point from a vendor on December 27, 2021, was received by Constance on January 5, 2022.
- Merchandise costing $54,000 was shipped to a customer f.o.b. shipping point on December 28,2021, arrived at the customer's location on January 6,2022.
- Merchandise costing $30,000 was being held on hand for Jess Company on consignment.
- Estimated sales returns are 10% of annual sales. Sales revenue was $568,000 with a gross profit ratio of 25%.
Question 1: What amount should Constance Corporation report as inventory in its December 31, 2021, balance sheet?
A. $170.600
B. $146,600
C. $206,725
D. $200,600
Question 2: Robertson Corporations' inventory balance was $33,000 at the beginning of the year and $20,000 at the end. The inventory turnover ratio for the year was 4.5 and the gross profit ratio 35%. What were net sales for the year?
A. $90,000
B. $119,250
C. $183,462
D. $340,714
Question 3: Udon Inc, adopted dollar-value LIFO (DVL) as of January 1, 2021, when it had an inventory of $690,000. Its inventory as of December 31,2021, was $741,600 at year-end costs and the cost index was 1.03. What was DVL inventory on December 31,2021?
A. $720,000
B. $720,900
C. $741,600
D. $710,700
Question 4: On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $190,000 and $268,800, respectively. Net purchases during the year at cost and at retail were $651,200 and $806,000, respectively. Markups during the year were $8,000. There were no markdowns. Net sales for 2021 were $783,550. The retail price index at the end of 2021 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2021 balance sheet?
A. $228,000
B. $299,250
C. $203,608
D. $239,400