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1. Lauer Corporation uses the periodic inventory system and has provided the fol

ID: 2444775 • Letter: 1

Question

1.

Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:

a. $1,333,000.

b. $1,349,287.

c. $1,382,500.

d. $1,325,000.

2.

Moore Company purchased an item for inventory that cost $25 per unit and was priced to sell at $40. It was determined that the replacement cost is $23 per unit. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory?

3.

Which of the following is correct when, in the same year, beginning inventory is overstated by $2,400 and ending inventory is understated by $810?

a. Net income is understated by $3,210.

b. Net income is overstated by $1,590.

c. Net income is overstated by $3,210.

d. Net income is understated by $1,590.

4.

Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:

  Date

Transaction

Number of Units

Cost per Unit

1/1

Beginning Inventory

130

$830         

5/5

Purchase

230

$930         

8/10

Purchase

330

$1,030         

10/15

Purchase

215

$1,080         

  

During the year, Lauer sold 825 laptop computers.
What was ending inventory using the LIFO cost flow assumption?

a. $85,900.

b. $86,400.

c. $66,400.

d. $87,400.

Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:

Explanation / Answer

1. Answer is C $1,382,500

290 $1230 $356700

480 $1180 $566400

380 $1080 $410400

50 $980 $49000

Total $1382500.00

2. $ 23 Per Unit

3. ending inventory and net income are affected in the same way while beginning inventory and net income are opposite.

Begin Inv - net income understated by 2400
Ending inv - net income understated by 810
net income overstated by A. $ 3210

4. Anser is different than options provided.

It must be $8,27,500