The management of Eckel Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense (A+)

he management of Eckel Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will:

(a) Provide the highest net income?

(b) Provide the highest ending inventory?

(c) Result in the lowest income tax expense?

(d) Result in the most stable earnings over a number of years?

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Jack Penny Company identifies the following items for possible inclusion in the physical inventory (A+)

Jack Penny Company identifies the following items for possible inclusion in the physical inventory. Indicate whether each item should be included or excluded from the inventory taking.

(a) Goods shipped on consignment by Penny to another company.

(b) Goods in transit from a supplier shipped FOB destination.

(c) Goods sold but being held for customer pickup.

(d) Goods held on consignment from another company

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Hanson Comp uses a periodic inventory system (A+)

Hanson Comp uses a periodic inventory system. For 2012, its beginning inventory was 74,000 purchased of inventory were 328,000 and inventory at the end of the period was 89,000. What was the amount of Hanson\’s cost of goods sold for 2012?

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The Following information for the year 2012 is taken from the accounts of Thomwood Company (A+)

The Following information for the year 2012 is taken from the accounts of Thomwood Company. The company uses the periodic inventory method: Inventory Jan 1, 2012: $2000 Purchases: 10000 Purchase returns and Allowances: 200 Purchase discounts: 100 Freight on goods purchased under terms FOB shipping point: 400 Cost of Goods sold: 7100 1) Based on this information the inventory at Dec 31, 2012 is?

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Kehow Co uses a periodic inventory System (A+)

Kehow Co uses a periodic inventory System. The company had begining inventory of 400 and ending inventory of 200. Kehoe\’s cost of goods sold was 1600. Based on this information, Kehoe must have purchased inventory amount to?

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The following data are from the income statement of Rathbun Company (A+)

The following data are from the income statement of Rathbun Company: Sales: 800 Cost of goods sold: (500) other expenses: (200) Net Income: 100 1) What is the company\’s gross margin percentage?

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Marathon Company purchased merchandise inventory that cost 8000 under terms of 2/10, n/30 and FOB shipping point (A+)

Marathon Company purchased merchandise inventory that cost 8000 under terms of 2/10, n/30 and FOB shipping point. -Marathon paid freight cost of 500 on the merchandise -Marathon made payment to the supplier within the discount period. -All of the goods were sold to customers on account for 12000 1) What is the gross margin for these transactions? 2) What is the net amount of the company\’s cash flow from operating activites?

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On jan1, 2012, Shaffer Co. purchased inventory for 1000 cash with credit terms of 2/10, n/30 (A+)

On jan1, 2012, Shaffer Co. purchased inventory for 1000 cash with credit terms of 2/10, n/30. If Shaffer does not pay within the discount period, what is the effective annual interest rate? Assume the perpetual inventory method is used.

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Barney Company uses the perpetual inventory system (A+)

Barney Company uses the perpetual inventory system. The company purfchased 4000 of merchandising from Bittiker Company under the terms n/30. Barney also paid 150 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for 9000 cash. 1) What is the amount of gross margin?

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Longoria Company purchased merchandise inventory on account with a list price of 5000 and credit terms of 1/10, n/30 (A+)

Longoria Company purchased merchandise inventory on account with a list price of 5000 and credit terms of 1/10, n/30. What was the net cash cost for the merchandise?

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