Question 1
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 2
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 3
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 FIFO inventory accounting method.
Company A’s cost of goods sold for April is:
Question 4
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 cost of goods sold under the average-cost method is:
Question 5
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
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 7
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:
1Question 8
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.
1Question 9
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
1Question 10
Consider the following facts:
– Company A purchased goods for $50,000
– The purchase terms were 2/10,n/30
– Company A returned $1,000 of the goods
– Company A paid freight of $250 on the shipment of the goods
– Company A paid the invoice within the discount period
As a result of this purchase, Company A’s inventory increased by:
1Question 11
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:
1Question 12
Consider the following facts:
– Company A sold products for $40,000 cash during the month.
– Customers returned $1,000 of the products.
– Company A’s gross profit rate is 40%.
Company A’s net sales revenue and cost of goods sold will be which of the following for the month?
1Question 13
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:
1Question 14
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:
1Question 15
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:
2Question16
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 ending inventory for April is
3Question 17
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 $ ___________.
3Question 18
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 FIFO is:
3Question19
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 net income (loss) was:
