Scribd Logo
Upload

Welcome to Scribd!

  • Untitled

    Uploaded by

    Rosemarie Cruz
    10 views1 page
    Fenn, Inc. purchased $400,000 of merchandise for resale in 2005. It incurred $10,000 in freight-in costs and $5,000 in freight-out costs. It also had $2,000 in purchase returns. Therefore, Fenn's 2005 inventoriable cost was $400,000 + $10,000 - $5,000 - $2,000 = $408,000.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Fenn, Inc. purchased $400,000 of merchandise for resale in 2005. It incurred $10,000 in freight-in costs and $5,000 in freight-out costs. It also had $2,000 in purchase returns. Therefore, Fenn's 2005 inventoriable cost was $400,000 + $10,000 - $5,000 - $2,000 = $408,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    Untitled

    Uploaded by

    Rosemarie Cruz
    Fenn, Inc. purchased $400,000 of merchandise for resale in 2005. It incurred $10,000 in freight-in costs and $5,000 in freight-out costs. It also had $2,000 in purchase returns. Therefore, Fenn's 2005 inventoriable cost was $400,000 + $10,000 - $5,000 - $2,000 = $408,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    C.

    $408,000

    The following information applied to Fenn, Inc. for 2005:

    Merchandise purchased for resale$400,000Freight-in10,000Freight-out5,000Purchase returns2,000

    Fenn's 2005 inventoriable cost was

    A. $413,000

    B. $400,000

    C. $408,000

    D. $403,000

    D. $95,000

    Diego Corporation values its inventory at the lower of cost or net realizable value as required by IFRS.
    Diego has the following information regarding its inventory.

    Historical cost $100,000

    Estimated selling price 98,000

    Estimated costs to complete and sell 3,000

    Replacement cost 90,000

    What is the amount for inventory that Diego should report on the balance sheet under the lower of cost
    or net realizable value method?

    A. $100,000

    B. $97,000

    C. $98,000

    D. $95,000

    You might also like