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At December 31, 2010 Howell Company’s inventory records indicated a balance of $1,128,000. Upon further investigation it was determined that this amount included the following:$168,000 in inventory purchases made by Howell shipped from the seller 12/27/10 terms FOB destination, but not due to be received until January 2nd$111,000 in goods sold by Howell with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th.$9,000 of goods received on consignment from Westwood CompanyWhat is Howell’s correct ending inventory balance at December 31, 2010?A)$840,000B)$960,000C)$951,000D)$1,119,000A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be?A)$50.B)$75.C)$60.D)$65.
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