septem Aegyptii me circumveniebant. duos graviter vulneravi, sed ceteri me superaverunt. procubui exanimatus. Seven Egyptians were surrounding me. I wounded two of them gravely, but the rest overcame me. I fell to the ground, unconscious. Quintus fought bravely, but he was outnumbered. He only managed to fight off two of the attackers before he was wounded himself.

Suppose Supreme Clothing suffered a hurricane loss and needs to estimate the cost of the goods destroyed. Beginning inventory was $94,000, net purchases totaled$564,000, and sales came to $940,000. Supreme’s normal gross profit percentage is 55%. Use the gross profit method to estimate the cost of the inventory lost in the hurricane. a.$658,000 b. $235,000 c.$517,000 d. $141,000

The beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month period ending August 31, 2014, are as follows:

$$\begin{array}{rlrrr} \text { Date } & \text { Transaction } & \begin{array}{c} \text { Number } \\ \text { of Units } \end{array} & \begin{array}{c} \text { Per } \\ \text { Unit } \end{array} & \text { Total } \\ \hline \text { June } 1 & \text { Inventory } & 500 & \$ 30.00 & \$ 15,000 \\ 10 & \text { Purchase } & 1,500 & 34,00 & 51,000 \\ 28 & \text { Sale } & 750 & 50.00 & 37,500 \\ 30 & \text { Sale } & 250 & 52.00 & 13,000 \\ \text { July } 5 & \text { Sale } & 100 & \$ 55.00 & \$ 5,500 \\ 10 & \text { Purchase } & 3,600 & 35.00 & 126,000 \\ 16 & \text { Sale } & 1,800 & 56.00 & 100,800 \\ 28 & \text { Sale } & 1,700 & 60.00 & 102,000 \\ \text { Aug. } 5 & \text { Purchase } & 3,000 & 35.80 & 107,400 \\ 14 & \text { Sale } & 2,000 & 60.00 & 120,000 \\ 25 & \text { Purchase } & 500 & 36.00 & 18,000 \\ 30 & \text { Sale } & 1,750 & 60.00 & 105,000 \\ \end{array}$$

Instructions

1. Determine the inventory on August 31, 2014, and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
2. Determine the inventory on August 31, 2014, and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.
3. Determine the inventory on August 31, 2014, and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the nearest cent.
4. Compare the gross profit and the August 31, 2014, inventories, using the following column headings:

$$\begin{array}{lrrr} &\textbf{FIFO}&\textbf{LIFO}&\textbf{Weighted Average}\\ \hline \text{Sales}\\ \text{Cost of merchandise sold}\\ \text{Gross profit}\\ \text{Inventory, August 31, 2014}\\ \end{array}$$

Which type of assessment would be the most reliable? a. subjective test c. personality inventory b. projective test d. observational study

Marlow Company applies a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions.

Required
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c ) specific identification—units sold consist of 500 units from beginning inventory and 100 units from the March 13 purchase, and (d ) weighted average. (Round per unit costs to three decimals, but inventory balances to the dollar.)
4. Compute gross profit earned by the company for each of the four costing methods in part 3.

Analysis Component
5. If the company’s manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer?

Refer to the information presented in the preceding exercise.

Requirements

1. Prepare the April income statement using absorption costing.
2. Determine the product cost per unit and the total cost of the 1,000 cases in Finished Goods Inventory as of April 30.
3. Is the April 30 balance in Finished Goods Inventory higher or lower than the variable costing? Explain why.

A high inventory turnover ratio provides evidence that a company is having problems with stockouts and disgruntled customers. Do you agree? Explain.

Refer to sixth quick study and compute the total equivalent units of production with respect to labor for June using the FIFO inventory method.

Hydro White Water Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2012, Hydro White Water incorrectly counted its inventory as $439,650 instead of the correct amount of$451,000.

d. If uncorrected, what would be the effect of the error on the December 31, 2013, balance sheet?

When cycle counting inventory, why do experts recommend a lower acceptable error tolerance for A items than B or C items ?

Compute cost of goods sold for each of these two companies for the year.

Using the answer line provided, complete item below with the correct word from the box. Use each word once. A. clamor B. contract c. duplicity D. equivocal E. irresolute F. rescind G. stagnant H. uniform I. untenable J. vilify _____ about whether to take the subway or catch a bus, I vacillated ${ }^{\circ}$ too long and managed to miss both.

Indicate whether each of the following debit and credit is included in the cash receipts journal. (Use “Yes” or “No” to answer this question.)

• Credit to Inventory.

Inventory levels The manager of a college bookstore stocks two types of notebooks, the first wholesaling for $55 \not \notin$ and the second for $85 \mathrm{c}$. The maximum amount to be spent is $\$ 600$, and an inventory of at least $300$ of the $85 \notin$ variety and $400$ of the $55 \notin$ variety is desired. Find and graph a system of inequalities that describes all possibilities for stocking the two types of notebooks.