KTTC1 - C7 - Trắc nghiệm Phương pháp LCM - IFRS 5 (English)

Luong Bao Vy

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41. An argument against the use of LCM is its lack of:

a. Relevance
b. Reliability
c. Consistency
d. Objectivity

42. Data related to the inventories of Costco Medical Supply are presented below:
Surgical EquipmentSurgical SuppliesRehab EquipmentRehab Supplies
Selling price$260$120$340$165
Cost17090250162
Replacement cost24080235158
Disposal cost3052510
Normal gross profit ratio30%30%30%20%

In applying the LCM rule, the inventory of surgical equipment would be valued at:

A. $230
B. $240
C. $170
D. $152

RC = 240
NRV = 260 - 30 = 230
NRV - NP = 230 - (260 x 30%) = $152

=> $170 designated cost is less than $230 designated market value.

43. Data related to the inventories of Costco Medical Supply are presented above 42:

In applying the LCM rule, the inventory of surgical supplies would be valued at

a. $115
b. $90
c. $80
d. $69

RC = 80
NRV = 120 - 5 = 115
NRV - NP = 115 - (120 x 30%) = $79

=> $80 designated market value is less than $90 cost

44. Data related to the inventories of Costco Medical Supply are presented above 42:

In applying the LCM rule, the inventory of rehab equipment would be valued at

a. $315
b. $247
c. $150
d. $235

RC = 235
NRV = 340 - 25 = 315
NRV - NP = 315 - (340 x 30%) = $213

=> $235 designated market value is less than $250 cost.

45. Data related to the inventories of Costco Medical Supply are presented above 42:

In applying the LCM rule, the inventory of rehab supplies would be valued at:

a. $122
b. $158
c. $162
d. $155

RC = 1585
NRV = 165 - 10 = 155
NRV - NP = 155 - (165 x .20) = $122

=> $155 designated market value is less than $162 cost.

46. Data related to the inventories of Costco Medical Supply are presented above 42:

In applying the LCM rule, the inventory of skis would be valued at:

a. $162,000
b. $128,000
c. $120,000
d. $126,000

RC = 120,000
NRV = 180,000 - (180,000 x .10) = 162,000
NRV - NP = 162,000 - (180,000 x .20) = $126,000

=> $126,000 designated market value is less than $128,000 cost

47. On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:
zbL425XCSKMp9HJr9ltC3k534v7eEOThMw--LeytRbTs0nEKwEJ_hWf4nRaKTVuw5MNKUISt34XH8fuoy11spZx_U251M_L89yrifKO9vZBjTpki5Xn6uR9nPcskNIX9JeyFZegWT-DlTCkG7dsptiQ

What is the estimated inventory on July 8 immediately prior to the fire?

a. $192,000
b. $490,000
c. $510,000
d. $280,000

Beginning inventory plus purchases: 770,000
Less: Estimated COGS (700,000 x [1-30%]) = 490,000

Estimated ending inventory 280,000


48. California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2013. In preparing its insurance claim on the inventory loss, the company developed the following data: Inventory January 1, 2013, $300,000; sales and purchases from January 1, 2013, to May 1, 2013, $1,300,000 and $875,000, respectively. California consistently reports a 40% gross profit. The estimated inventory on May 1, 2013, is:

a. $302,500
b. $360,000
c. $395,000
d. $455,000

49. Howard's Supply Co. suffered a fire loss on April 20, 2013. The company's last physical inventory was taken January 30, 2013, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Howard's consistently reports a 30% gross profit. The estimated inventory loss is:

a. $490,000
b. $238,000
c. $250,000
d. None of the above is correct

50. Coastal Shores Inc. (CSI) was destroyed by Hurricane Fred on August 5, 2013. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2013, to August 5, 2013, totaled $480,000 and purchases totaled $195,000 during that time. CSI consistently marks up its products 60% over cost to arrive at a selling price. The estimated inventory loss due to Hurricane Fred would be:

a. $131,175
b. $65,000
c. $17,143
d. None of the above is correct
 

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