Question 3 of 22
Consider the following facts:
– Company A had product sales revenues of $30,000 for the month.
– Its cost of goods sold was $18,000 for the month.
– Its other operating expenses were $2,000 for the month.
– Company A also had rent revenue of $500 for the month.
– Also during the month, it sold a delivery truck for a gain of $1,000 during the month.
For the month, Company A’s operating income (loss) was:
Question 4 of 22
Consider the following facts:
– Company E has a beginning inventory of $30,000.
– Purchases during the period were $130,000
– $4,000 of purchases were returned
– Freight-in charges were $10,000
– Company E’s physical inventory count indicated $20,000 goods on hand at the end of the period.
Company E’s cost of goods available for sale was:
Question 5 of 22
Consider the following facts:
– Company A had product sales revenues of $30,000 for the month.
– Its cost of goods sold was $18,000 for the month.
– Its other operating expenses were $2,000 for the month.
– Company A also had rent revenue of $500 for the month.
– Also during the month, it sold a delivery truck for a gain of $1,000 during the month.
For the month, Company A’s gross profit was:
Question 6 of 22
Consider the following facts:
– Company A has the following inventory information:
– Inventory at the beginning of January was 15 units purchased at $8.00 each.
– On January 8, purchased 60 units @ $8.30 each
– On January 17, purchased 30 units @ $8.40 each
– On January 25, purchased 45 units @ $8.80 each
– On January 31, a physical count showed 45 units on hand
– Company A uses the periodic inventory system
– Company A uses the specific identification method.
– The ending inventory includes 10 units from each of the purchases and 15 units from the beginning balance.
Company A’s cost of goods sold is:
7.
Beginning inventory at cost = $32,000
Cost of goods purchased at cost = $136,750
Net sales = $178,000
Beginning inventory at retail = $46,000
Cost of goods purchased at retail = $179,000
What is the cost of the ending inventory for Product A under the retail inventory method?
Question 8 of 22
Consider the following facts:
– Company A begin business operations in the month of April.
– On April 1, it purchased 150 units of goods for $390.
– On April 10, it purchased 200 units of goods for $585.
– On April 15, it purchased 200 units of goods for $630.
– On April 28, it purchased 150 units of goods for $510.
– At the end of the month, it discovered that it had 200 units on hand after completing its physical inventory count.
– Company A uses the average-cost inventory accounting method.
Company A’s cost of goods sold for April is:
Question 9 of 22
Consider the following facts:
– Company A has the following inventory information:
– Inventory at the beginning of January was 15 units purchased at $8.00 each.
– On January 8, purchased 60 units @ $8.30 each
– On January 17, purchased 30 units @ $8.40 each
– On January 25, purchased 45 units @ $8.80 each
– On January 31, a physical count showed 45 units on hand
– Company A uses the periodic inventory system
Company A’s ending inventory under LIFO is:
Question 10 of 22
Consider the following facts:
– Company A purchased goods for $20,000.
– Its credit terms were 2/10, n/30.
– Company A returned $400 of the goods to the seller and received credit on its account.
– Company A paid the freight on the shipment of the goods originally. The freight cost was $100.
– Company A made final payment for the goods within the discount period.
Based on this scenario, Company A’s inventory:
A. None of these answers are correct.
B. increased by $19,306.
C. increased by $19,700.
D. increased by $19,308.
E. increased by $19,208.
Question 11 of 22
Consider the following facts for Company A:
– Beginning inventory = $45,000
– Cost of goods purchased = $190,000
– Ending inventory = $55,000
Based on these facts, Company A’s Days in Inventory ratio is ______ days.
Question 12 of 22
Consider the following facts:
– Company V uses a periodic inventory system
– Purchases were $600,000 during the period
– Purchase Returns and Allowances were $25,000 during the period
– Purchase Discounts were $11,000 during the period
– Freight-In was $19,000 during the period
– Beginning Inventory was $45,000
– Ending Inventory was $55,000
– Net Sales were $750,000 during the period
Cost of Goods Sold for the period was:
Question 13 of 22
Consider the following facts:
– Company A’s accounting records at the end of the year shows the following:
Purchase Discounts $5,600
Freight In $7,800
Purchases $201,000
Beginning Inventory $23,500
Ending Inventory $28,800
Purchase Returns $6,400
– Company A uses the periodic inventory system.
Company A’s cost of goods purchased is:
Question 14 of 22
Consider the following facts:
– Company A had product sales revenues of $30,000 for the month.
– Its cost of goods sold was $18,000 for the month.
– Its other operating expenses were $2,000 for the month.
– Company A also had rent revenue of $500 for the month.
– Also during the month, it sold a delivery truck for a gain of $1,000 during the month.
For the month, Company A’s non-operating income (loss) was:
Question 15 of 22
Consider the following facts for Company A:
– Beginning inventory = $71,000
– Cost of goods purchased = $292,000
– Ending inventory = $69,000
Based on these facts, Company A’s Days in Inventory ratio is ______ days.
Question 16 of 22
Company A had the following account balances at the end of its fiscal year:
Cost of goods sold = $212,400
Freight-out = $7,000
Insurance expense = $6,000
Salaries and wages expense = $58,000
Rent expense = $32,000
Sales discounts = $7,000
Sales returns and allowances = $13,000
Sales revenue = $380,000
Company A’s net income for the period is $ ___________.
Question 17 of 22
Consider the following facts:
– Company A had merchandise inventory of $550,000 at January 1
– For the year, it had purchases of $2,250,000
– For the year, it had net sales of $3,200,000
– The physical inventory on December 31 showed $500,000 in the warehouse
– Company A’s gross profit on sales was 30%
– Company A’s suspects some of its ending inventory is missing due to theft
The estimated cost of the missing inventory is:
Question 19 of 22
Consider the following facts:
– Company A uses the perpetual inventory system
– It records inventory purchases at net cost
– It purchased goods for $6,000 with credit terms of 2/10, n/30
– It returned half of the goods purchased
– The discount period expired before it paid the outstanding invoice
The journal to record the payment of the invoice when paid includes a:
A. credit to cash for $2,940.
B. debit to an expense account for $60.
C. credit to Cash for $2,000.
D. debit to Merchandise Inventory for $3,000.
E. None of these answers are correct
Question 20 of 22
Consider the following facts:
– Company A sells merchandise on account for $3,000 to Company C
– The credit terms of the sale are 2/10, n/30
– Company C returns $450 of the merchandise
– Company C pays the outstanding balance within the discount period
Which of the following is true about the journal entry, Company A will make when Company C pays?
A. Sales Discounts will debited for $51
B. Accounts Receivable will be debited for $2,550
C. Cash will be debited for $2,550
D. Sales Returns and Allowances will be debited for $501
E. None of these answers are correct
Question 21 of 22
Consider the following facts:
– Company A had inventory of $300,000 at the beginning of the period.
– It wants inventory on hand to be $350,000 at the end of the period.
– Net sales for the period are expected to be $1,500,000.
– The gross profit rate is expected to be 30%.
How much merchandise should Company A expect to purchase during the year?
Question 22 of 22
Consider the following facts:
– Company A had inventory of $500,000 at the beginning of the year.
– It purchased $1,600,000 of inventory during the year.
– Its ending inventory for the year was $600,000.
– During the year it sold products for $2,500,000.
Company A’s cost of goods sold and gross profit rate for the year was:
A. $1,500,000 and 60%.
B. $1,500,000 and 40%.
C. $1,000,000 and 66.7%.
D. None of these answers are correct
E. $1,000,000 and 40%.
