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Coveland Company repored begitning and cbding thuntory M $5300,000..)$

$51\mathrm{.}500,009$ respoctively Sales and griprides $520\mathrm{.}0000$ ent $518000\mathrm{.}009$

respectively

The inventory tumoser ratio is $20$ times.

The inventory turover ratio is $14$ times Thie inventory tumover ratio is $6$ times

None of the above

Lagocandy, a chain of cundy stores, purchases its candy in bulk from its soppliers. Fer

a recelt shipment the company paid $51,800$ and reccivet x$,500$ pieces of candy that

are allocated among three groups. Group I consists of $2\mathrm{.}500$ pieces that ave capected. $10$ sell for $50\mathrm{.}15$ each. Group $2$ consists of $5,500$ pieces that are expocted to sell Tor

$50\mathrm{.}36$ each Group $3$ consists of $500$ pieces that are expected to sell for $50\mathrm{.}72$ cach.

Using the relative sales value method, what is the cost per item in Group $2?$ a$.50\mathrm{.}281$

b

$50\mathrm{.}30$

d$.$

$$0\mathrm{.}201$

$$0\mathrm{.}24$

Goods in transit which are shipped fob: shipping point should be

$*$ included in the inventory of the seller.

$*$ included in the inventory of the buyer. included in the inventory of the shipping company.

d$.$ none of these.

An improvement made to a machine increased its fair market value and its production

capacity by $25\%$ The improvement also extended the machine's useful life. The cor

of the improvement should be

$5.$ dobied to acurnuated deprciaion

capitalized in the machine account.

allocated between accumulated depreciation and the machine account.

Hawkeyc Company purchased equipment for $$10,000.$ Sales tax on the purchase

$5500.$ Other costs incurred were freight charges of $5200,$ repairs of $5350$ for acci damage to a building during installation, and installation costs of $$225,$ What is th of the equipment? a$.$ $$10,000$ b$.$

$$10,500$

$$10,925$

d

$$11,275$

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