YR05 Ford Co balance sheet

The total amount of inventory to be reported on Ford's December 31, YR05 balance sheet would be:

a. $100 b. $120 c. $130 d. $135 e. none of the above

2. On September 1, YR05, Bose Co. purchased 16 units of inventory from its supplier for $6 each. In the period of October-December, Bose sold 4 of these units for $9 each. At December 31, YR05, Bose had 12 units left and determined that the supplier had reduced the price of these inventory items to $5 each (replacement cost). Bose expects to continue selling the units for $9 each. Given these facts, the year end adjusting entry needed under the lower-of-cost-or-market rule would be:

a. no adjustment is needed since the expected sales price exceeds historical cost. b. debit inventory $12, credit hain on prive appreciation $12 c. debit gain on price appreciation $12, credit inventory $12. d. credit cost of goods sold for $12, debit inventory for $12. e. debit cost of goods sold for $12, credit inventory for $12.

3. When a company uses the FIFO inventory costing method, the unit costs used to compute cost of goods sold and ending inventory are determined by the unit costs of which inventory purchases?

4. When a company uses the LIFO inventory costing method, the unit costs used to compute cost of goods sold and ending inventory are determined by the unit costs of which inventory purchases?