Metro Computer Company had the following balances and transactions during 2014. \[\begin{array} { | l | l | } \hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \\ \hline \text { March } 10 & \text { Sold } 50 \text { units } \\ \hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \\ \hline \text { October 30 } & \text { Sold } 150 \text { units } \\ \hline \end{array}\] - What would the company's Inventory amount be on the December 31,2014 balance sheet if the perpetual Last-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

A) $7,500 B) $8,000 C) $7,750 D) $7,300 A) $7,500 B) $8,000 C) $7,750 D) $7,300

Metro Computer Company had the following balances and transactions during 2014. \[\begin{array} { | l | l | } \hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \\ \hline \text { March } 10 & \text { Sold } 50 \text { units } \\ \hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \\ \hline \text { October 30 } & \text { Sold } 150 \text { units } \\ \hline \end{array}\] - What would the Cost of goods sold be as reported on the income statement at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

A) $15,000 B) $12,000 C) $16,000 D) $15,500 A) $15,000 B) $12,000 C) $16,000 D) $15,500

Metro Computer Company had the following balances and transactions during 2014. \[\begin{array} { | l | l | } \hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \\ \hline \text { March } 10 & \text { Sold } 50 \text { units } \\ \hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \\ \hline \text { October 30 } & \text { Sold } 150 \text { units } \\ \hline \end{array}\] -What would the Inventory amount be as reported on the balance sheet at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

A) $7,000 B) $8,600 C) $8,000 D) $7,750 A) $7,000 B) $8,600 C) $8,000 D) $7,750

Exam 6: Merchandising Inventory

Metro Computer Company had the following balances and transactions during 2014. Beginning inventory 100 units at \ 75 March 10 Sold 50 units June 10 Purchased 200 units at \ 80 October 30 Sold 150 units - What would the company's Inventory amount be on the December 31,2014 balance sheet if the perpetual Last-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

(Multiple Choice)

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Question 81

The consistency principle states that a business should use the same accounting methods from period to period.

(True/False)

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Question 82

Martin Sales had a Beginning inventory balance of $120 made up of 10 units purchased for $12.00 per unit.Early in the month,they purchased 16 units at $10.00 per unit.Later that month,they sold 15 units.Martin uses a perpetual inventory system,and applies the average-costing method. -How much is the Ending inventory balance? (When calculating average cost,please round to the nearest cent.When calculating Cost of goods sold and Ending inventory,please round to the nearest whole dollar.)

(Multiple Choice)

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Question 83

Metro Computer Company had the following balances and transactions during 2014. Beginning inventory 100 units at \ 75 March 10 Sold 50 units June 10 Purchased 200 units at \ 80 October 30 Sold 150 units - What would the Cost of goods sold be as reported on the income statement at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

(Multiple Choice)

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Question 84

A company purchased 100 units for $20 each on January 31.It purchased 100 units for $30 on February 28.It sold 150 units for $45 each from March 1 through December 31.If the company uses the average cost inventory costing method,what is the amount of Cost of goods sold on the December 31 income statement?

(Multiple Choice)

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Question 85

Under which of the following inventory costing methods is the Cost of goods sold based on the cost of the oldest purchases?

(Multiple Choice)

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Question 86

Better Buy has six CD players in inventory on December 31.The players were purchased in November for $170.Price lists from Better Buy's supplier indicate that the same CD player would now cost the company $168.The current sales price for each of the CD players is $320.What would be the amount reported as Inventory on the balance sheet?

(Multiple Choice)

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Question 87

Which inventory valuation model minimizes income tax when costs are rising?

(Multiple Choice)

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Question 88

Martin Sales had a Beginning inventory balance of $120 made up of 10 units purchased for $12.00 per unit.Early in the month,they purchased 16 units at $10.00 per unit.Later that month,they sold 15 units.Martin uses a perpetual inventory system,and applies the average-costing method. -How much is Cost of goods sold for the month? (When calculating average cost,please round to the nearest cent.When calculating Cost of goods sold and Ending inventory,please round to the nearest whole dollar.)

(Multiple Choice)

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Question 89

Better Buy has six CD players in inventory on December 31.The players were purchased in November for $170.Price lists from Better Buy's supplier indicate that the same CD player would now cost the company $168.The current sales price for each of the CD players is $320.The adjustment would have what effect on Gross profit?

(Multiple Choice)

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Question 90

A company uses periodic inventory in connection with the average-cost method.The company began the year with zero inventory balance.They had the following transactions during the year: Purchased 50 units at $\$ 4.00$ per unit Purchased 100 units at $\$ 4.10$ per unit Sold 80 units at a price of $\$ 12.00$ per unit Purchased 60 units at $\$ 3.20$ per unit Sold 75 units at a price of $\$ 12.75$ per unit At the end of the year,they counted the inventory and found 55 units remaining.How much was the Cost of goods sold for the year? (Please round to the nearest whole dollar.)

(Multiple Choice)

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Question 91

Which of the following states that the business should use the same accounting methods from period to period?

(Multiple Choice)

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Question 92

Revenue is $400,000 and Cost of goods sold is $100,000.How much is the gross profit percent?

(Multiple Choice)

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Question 93

Which of the following concepts states that a company must perform strictly proper accounting ONLY for significant items?

(Multiple Choice)

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Question 94

Company uses the periodic inventory method and offers the following information: Beginning inventory \ 4,000 Purchases \ 120,000 Purchase discounts \ 2,400 Purchase returns and allowances \ 800 At the end of the period,the company does an inventory count and finds $16,000 of inventory on hand. - Which of the following pairs of T-accounts accurately represents the first two closing entries?

(Multiple Choice)

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Question 95

Using the FIFO costing method will always produce the same results whether a company uses perpetual or periodic inventory.

(True/False)

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Question 96

When using periodic inventory,the closing process begins with closing out the Beginning inventory to Cost of goods sold.

(True/False)

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Question 97

Metro Computer Company had the following balances and transactions during 2014. Beginning inventory 100 units at \ 75 March 10 Sold 50 units June 10 Purchased 200 units at \ 80 October 30 Sold 150 units -What would the Inventory amount be as reported on the balance sheet at December 31,2014 if the perpetual First-In,First-Out costing method is used? (Answers are rounded to the nearest dollar.)

(Multiple Choice)

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Question 98

The specific-unit-cost method of inventory costing is recommended when a business deals in unique and high-priced inventory items.

(True/False)

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Question 99

A company that uses the perpetual inventory system sold $1,000 of goods to a customer for cash.Which of the following journal entries correctly records the Sales revenue?

(Multiple Choice)

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Question 100

Showing 81 - 100 of 156

The consistency principle states that a business should use the same accounting methods from period to period.

Under which of the following inventory costing methods is the Cost of goods sold based on the cost of the oldest purchases?

Which inventory valuation model minimizes income tax when costs are rising?

Which of the following states that the business should use the same accounting methods from period to period?

Revenue is $400,000 and Cost of goods sold is $100,000.How much is the gross profit percent?

Which of the following concepts states that a company must perform strictly proper accounting ONLY for significant items?

Using the FIFO costing method will always produce the same results whether a company uses perpetual or periodic inventory.

When using periodic inventory,the closing process begins with closing out the Beginning inventory to Cost of goods sold.

The specific-unit-cost method of inventory costing is recommended when a business deals in unique and high-priced inventory items.

A company that uses the perpetual inventory system sold $1,000 of goods to a customer for cash.Which of the following journal entries correctly records the Sales revenue?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

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