devry acct304 week 7 quiz

(TCO 8) In applying LCM, market cannot be
less
than net realizable value minus a normal profit margin.
net
realizable value less reasonable completion and disposal costs.
greater than net realizable
value reduced by an allowance for normal profit margin.
less
than cost.

Question 2. Question
:

(TCO 8) Montana Co. has determined its year-end inventory on
a FIFO basis to be $600,000. Information pertaining to that inventory is as
follows:

What should be the carrying value of Montana’s inventory?

$600,000
$520,000
$590,000
$510,000

Question 3. Question
:

(TCO 8) Howard’s Supply Co. suffered a fire loss on April
20, 2011. The company’s last physical inventory was taken on January 30, 2011,
at which time the inventory totaled $220,000. Sales from January 30 to April 20
were $600,000, and purchases during that time were $450,000. Howard’s
consistently reports a 30% gross profit. The estimated inventory loss is
$490,000.
$238,000.
$250,000.
None
of the above

Question 4. Question
:

(TCO 8) When computing the cost-to-retail percentage for the
conventional retail method, included in the denominator are
net
markups and net markdowns.
neither
net markups nor net markdowns.
net markups, but not net
markdowns.
net
markdowns, but not net markups.

Question 5. Question
:

(TCO 8) Retrospective treatment of prior years’ financial
statements is required when there is a change from
average
cost to FIFO.
FIFO
to average cost.
LIFO
to average cost.
All of the above