Chapter 9 17. The floor to be used in applying the lower-of-cost-or-market method to inventory is determined as thea. net realizable value.b. net realizable value less normal profit margin.c. replacement cost.d. selling price less costs of completion and disposal. 18. To produce an inventory valuation which approximates the lower of cost or market using the conventional retail inventory method, the computation of the ratio of cost to retail shoulda. include markups but not markdowns.b. include markups and markdowns.c. ignore both markups and markdowns.d. include markdowns but not markups. 19. On January 1, 2012, the merchandise inventory of Glaus, Inc. was $1,000,000. During 2012 Glaus purchased $2,000,000 of merchandise and recorded sales of $2,500,000. The gross profit rate on these sales was 25%. What is the merchandise inventory of Glaus at December 31, 2012?a. $500,000.b. $625,000.c. $1,125,000.d. $1,875,000.20. Barker Pet supply uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $531,200 ($653,800), purchases during the current year at cost (retail) were $2,137,200 ($2,772,200), freight-in on these purchases totaled $127,800, sales during the current year totaled $2,604,000, and net markups (markdowns) were $4,000 ($192,600). What is the ending inventory value at cost?a. $633,400.b. $516,222.c. $822,000.d. $493,334.21. The 2012 financial statements of Sito Company reported a beginning inventory of $80,000, an ending inventory of $120,000, and cost of goods sold of $800,000 for the year. Sito’s inventory turnover ratio for 2012 isa. 10.0 times.b. 8.0 times.c. 6.7 times.d. 5.7 times. 22. In no case can "market" in the lower-of-cost-or-market rule be more thana. estimated selling price in the ordinary course of business.b. estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal.c. estimated selling price in the...