Professional Documents
Culture Documents
Far 2
Far 2
Jan. 10 200,$22
A physical count on January 31, year 2, shows 250 units of product A on hand. The cost of the inventory
at January 31, year 2, under the LIFO method is
A. $5,850
B. $5,250
C. $5,350
D. $5,550
D. $1,710,000
Herc Co.'s inventory on December 31, 2005 was $1,500,000, based on a physical count priced at cost,
and before any necessary adjustment for the following:
-Merchandise costing $90,000, shipped FOB shipping point from a vendor on December 30, 2005, was
received and recorded on January 5, 2006.
-Goods in the shipping area were excluded from inventory although shipment was not made until
January 4, 2006. The goods, billed to the customer FOB shipping point on December 30, 2005, had a cost
of $120,000.
What amount should Herc report as inventory in its December 31, 2005, balance sheet?
A. $1,500,000
B. $1,620,000
C.$1,590,000
D. $1,710,000
D. Understated by $78,000.
Bren Co.'s beginning inventory at January 1, 2005 was understated by $26,000, and its ending inventory
was overstated by $52,000. As a result, Bren's cost of goods sold for 2005 was:
A. Overstated by $78,000.
B. Overstated by $26,000.
C. Understated by $26,000.
D. Understated by $78,000.