A company has two pieces of Inventory, A and B. Inventory A cost the company $40 per unit and can now be sold for $60 per unit after incurring $15 in selling expenses per unit. It has a replacement cost of $35 per unit and a normal profit of $4 per unit. Inventory B cost the company $52 per unit and can now be sold for $63 per unit after incurring $15 in selling expenses per unit. It has a replacement cost of $55 per unit and a normal profit of $4 per unit. If the company uses the retail method to value its inventory, how much should be reported on the balance sheet for these items?

A company counts its inventory and arrives at a total of $167,000. The company fears that some merchandise has been stolen and seeks to estimate the amount of the loss. Sales for the period were $600,000. Gross profit is set by the company at a standard 40% of the sales price. According to ledger balances, inventory on the first day of the year was $150,000 and purchases of $390,000 were made during the period. How much theft has occurred?

A company buys 100 units of inventory for $20 each. Later, 90 of these units are sold on credit for $50 each. The company then buys an additional 40 units but the cost has risen to $22 each. The company sells a final 30 units for $55 each. The company uses a moving average system for calculating its cost of goods sold. What should be reported as the cost of the 120 units sold during the year?

Of the following, which is not a legitimate method of inventory costing?

On July 1, Year 10, Cabaret Corporation factored $80,000 of its accounts receivable without recourse to Playtime Company. Playtime retains 10% of the accounts receivable as an allowance for sales returns and charges a 5% commission on the gross amount of factored receivables. How much cash did Cabaret receive from factoring its receivables?

Which of the following situations is most likely to be treated as a sale of accounts receivables?

Walnut Company received from a customer an 1-year, $200,000 note bearing annual interest of 8%. After holding the note for 8 months, Walnut discounted the note at a local bank at an effective rate of 12%. What is the maturity value of the note?

Of the following, which is a method of estimating uncollectible accounts that emphasizes asset valuation rather than income measurement?

Turblad Company has several items in its safe at December 31, Year 1. Which of these items would not be included in Turblad's cash & cash equivalents in its Year 1 balance sheet?

Globe Company began April of Year 3 with a cash balance of $68,000 in its operating account. During the month of April, Globe issued new checks totaling $14,000 to vendors. Of these newly issued checks, $9,000 cleared the bank in April. Globe also transferred $8,000 to its payroll account to pay employees during the month. Globe received $22,000 in checks from its customers in April and deposited $18,000 of those checks during the month. Also during April $6,000 of checks issued during March of Year 3 cleared the bank. What is Globe's cash balance in its operating account at the end of April, Year 3?