Dock Inc. adopted the dollar-value LIFO inventory method as of January 1, 2015. A single inventory pool and an internally computed price index are used to compute Brock's LIFO inventory layers. Information about Dock's dollar value inventory follows:
|
Inventory
|
|
Date
|
At base cost
Year cost
|
At current
Year cost
|
At dollar
Value LIFO
|
|
1/1/2015
|
$60,000
|
$ 60,000
|
$60,000
|
|
2015 layer
|
7,500
|
21,000
|
9,000
|
|
12/31/2015
|
67,500
|
81,000
|
69,000
|
|
2016 layer
|
22,500
|
39,000
|
?
|
|
12/31/2016
|
$90,000
|
$120,000
|
?
|
Required: What is Dock's dollar value LIFO inventory at December 31, 2016?
Crunch Company uses the conventional retail inventory method to account for inventory. The following information related to 2016 operations:
|
|
Average
|
|
|
Cost
|
Retail
|
|
Beginning inventory and purchases
|
$450,000
|
$690,000
|
|
Net markups
|
|
30,000
|
|
Net markdowns
|
|
45,000
|
|
Sales
|
|
585,000
|
Required: What amount should be reported as cost of sales for 2016?
Quince Inc. uses the periodic inventory costing system. The Quince ending merchandise inventory official count at December 31, 2017 totaled $120,000. However, the balance in the merchandise inventory general ledger account at December 31, 2017 was $125,000. What was the amount of the over-or-understatement for cost of goods sold and gross profit for 2017?