Q1. Allgone Company's inventory was destroyed by fire. Its records show net sales of $90,000, beginning inventory of $20,000, net purchases of $75,000 and a gross margin rate of 30%. What is the estimated value of the ending inventory lost in the fire?
$75,000
$158,000
$68,000
None of the above
$32,000
Q2. The following information relates to the inventory of ABC Inc. who uses a perpetual inventory system:
DateTransaction# UnitsUnit cost/sales priceDecember 4Opening inventory300$15December 10Purchase inventory100$18December 15Sell inventory320$27December 20Purchase inventory150$20December 29Sell inventory100$30
What is the value of inventory on hand after the December 29 sale if FIFO is used?
$2,600
$2,200
$2,400
$3,900
$1,950
Q3. The following information has been extracted from the records of Due North Sales (DNS) Co.:
January 1 Beginning Inventory 550 units @ $26 each
January 9 Bought 1,000 units @ $28 each
January 15 Sold 1,200 units @ $40 each
January 25 Bought 800 units @ $30 each
If Due North Sales (DNS) uses the FIFO cost flow assumption, under a perpetual method, the ending inventory value at January 31st is:
$31,100
$32,750
$33,552
None of the other alternatives are correct
$33,800