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
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