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 average-costing method is used? (Answers are rounded to the nearest dollar.)

A) $13,900 B) $14,600 C) $15,600 D) $17,750 A) $13,900 B) $14,600 C) $15,600 D) $17,750

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

A) \[\begin{array}{c} { \text { Cost of goods sold } } \\ \hline\begin{array}{ l r | l } \text { 1) } & & 4,000 \\ \text { 2) } & 16,000 & \\ \text { 3) } & & 116,800 \end{array}\end{array}\] B) \[\begin{array}{c} { \text { Cost of goods sold } } \\ \hline\begin{array}{ l r | l } \text { 1) } & 116,800 & \\ 2 ) & 4,000 & \\ 3 ) & & 116,000 \end{array}\end{array}\] C) $\begin{array}{lr|r} {\text { Cost of goods sold }} \\ \hline \text { 1) } && 116,800 & \\ \text { 2) } & & 16,000 \\ \text { 3) } & 4,000 & \end{array}$ D) $\begin{array}{lr|r} {\text { Cost of goods sold }} \\ \hline \text { 1) } & 4,000 & \\ \text { 2) } & & 16,000 \\ \text { 3) } & 116,800 & \end{array}$ A) \[\begin{array}{c} { \text { Cost of goods sold } } \\ \hline\begin{array}{ l r | l } \text { 1) } & & 4,000 \\ \text { 2) } & 16,000 & \\ \text { 3) } & & 116,800 \end{array}\end{array}\] B) \[\begin{array}{c} { \text { Cost of goods sold } } \\ \hline\begin{array}{ l r | l } \text { 1) } & 116,800 & \\ 2 ) & 4,000 & \\ 3 ) & & 116,000 \end{array}\end{array}\] C) $\begin{array}{lr|r} {\text { Cost of goods sold }} \\ \hline \text { 1) } && 116,800 & \\ \text { 2) } & & 16,000 \\ \text { 3) } & 4,000 & \end{array}$ D) $\begin{array}{lr|r} {\text { Cost of goods sold }} \\ \hline \text { 1) } & 4,000 & \\ \text { 2) } & & 16,000 \\ \text { 3) } & 116,800 & \end{array}$

The following data is available: \[\begin{array} { | r | r | } \hline \text { Net sales, first month } & \$ 13,000 \\ \hline \text { Normal gross profit } & 45 \% \\ \hline \text { Beginning inventory } & 8,000 \\ \hline \text { Net purchases } & 7,000 \\ \hline \end{array}\] - Using the gross profit method,the amount of Gross profit would be:

A) $15,000. B) $6,750. C) $5,850. D) $3,600. A) $15,000. B) $6,750. C) $5,850. D) $3,600.

A company that uses the periodic inventory method provides the following information: $\begin{array} { l r } \text { Beginning inventory } & \$ 4,000 \\ \text { Net Purchases } & \$ 85,000 \end{array}$ At the end of the period,the company does an inventory count and finds $9,000 of inventory on hand. How much is the Cost of goods sold?

A) $98,000 B) $72,000 C) $80,000 D) $90,000 A) $98,000 B) $72,000 C) $80,000 D) $90,000

Callahan Computers stores its inventory in a warehouse that burned to the ground in late November,2012.Their sales office was at a different location.In order to file a claim with their insurance,the owners ask you to estimate the inventory in the warehouse.The following information is available: \[\begin{array} { | l | r |} \hline \text { Beginning inventory } & \$ 375,500 \\ \hline \text { Purchases through November 30 } & 470,250 \\ \hline \text { Net sales revenue through November 31 } & 793,000 \\ \hline \end{array}\] The company's gross profit has historically been 40% of Net sales revenue.Estimate the value of the inventory destroyed in the fire using the gross profit method.

A) $369,950 B) $528,550 C) $410,000 D) $388,450 A) $369,950 B) $528,550 C) $410,000 D) $388,450

Exam 6: Merchandising Inventory

A company uses periodic inventory in connection with LIFO costing.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)

4.9/5

(84)

Question 141

Ending inventory for the current accounting period is understated by $2,700.What effect will this error have on Cost of goods sold and Net income?

(Multiple Choice)

4.9/5

(84)

Question 142

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 average-costing method is used? (Answers are rounded to the nearest dollar.)

(Multiple Choice)

4.9/5

(59)

Question 143

A company that uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.The company sold the whole lot to a supermarket chain for $10,000 on account.The company uses the specific-identification method of inventory costing.Which of the following entries correctly records the Cost of goods sold?

(Multiple Choice)

4.8/5

(73)

Question 144

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 T-accounts accurately represents the first three closing entries?

(Multiple Choice)

4.8/5

(74)

Question 145

Berring Sales uses LIFO.The partially completed inventory record for January appears below. On January 14,the company sold 10 units.On January 29,the company sold 50 units. -Complete the inventory record through the January 14 sale,and calculate the Cost of goods sold for the January 14 sale.(Please round to the nearest whole dollar.)

(Multiple Choice)

4.9/5

(75)

Question 146

A company that uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.The company sold the whole lot to a supermarket chain for $10,000 on account.Which of the following entries correctly records the Sales revenue?

(Multiple Choice)

4.9/5

(93)

Question 147

Which of the following states that a company must perform strictly proper accounting ONLY for items that are significant to the business's financial statements?

(Multiple Choice)

4.8/5

(87)

Question 148

The following data is available: Net sales, first month \ 13,000 Normal gross profit 45\% Beginning inventory 8,000 Net purchases 7,000 - Using the gross profit method,the amount of Gross profit would be:

(Multiple Choice)

4.8/5

(78)

Question 149

A company that uses the periodic inventory method provides the following information: Beginning inventory \ 4,000 Net Purchases \ 85,000 At the end of the period,the company does an inventory count and finds $9,000 of inventory on hand. How much is the Cost of goods sold?

(Multiple Choice)

4.9/5

(92)

Question 150

Berring Sales uses the average-cost method.The partially completed inventory record for January appears below. On January 14,the company sold 10 units.On January 29,the company sold 50 units. -Complete the inventory record through the January 14 sale,and calculate the Cost of goods sold for the January 14 sale.(Please round to the nearest whole dollar.)

(Multiple Choice)

4.9/5

(85)

Question 151

Which of the following principles are reflected in the lower-of-cost-or-market rule?

(Multiple Choice)

4.8/5

(84)

Question 152

Which of the following assets must be reported at the lower-of-cost-or-market?

(Multiple Choice)

4.9/5

(80)

Question 153

When a company uses the perpetual inventory method,which of the following would be the entry to adjust inventory to lower-of-cost-or-market?

(Multiple Choice)

4.9/5

(74)

Question 154

Changing from the LIFO (Last-In,First-Out)to specific-identification method of valuing inventory ignores the:

(Multiple Choice)

4.9/5

(79)

Question 155

Callahan Computers stores its inventory in a warehouse that burned to the ground in late November,2012.Their sales office was at a different location.In order to file a claim with their insurance,the owners ask you to estimate the inventory in the warehouse.The following information is available: Beginning inventory \ 375,500 Purchases through November 30 470,250 Net sales revenue through November 31 793,000 The company's gross profit has historically been 40% of Net sales revenue.Estimate the value of the inventory destroyed in the fire using the gross profit method.

(Multiple Choice)

4.7/5

(86)

Question 156

Showing 141 - 156 of 156

Ending inventory for the current accounting period is understated by $2,700.What effect will this error have on Cost of goods sold and Net income?

A company that uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.The company sold the whole lot to a supermarket chain for $10,000 on account.Which of the following entries correctly records the Sales revenue?

Which of the following states that a company must perform strictly proper accounting ONLY for items that are significant to the business's financial statements?

The following data is available: Net sales, first month \ 13,000 Normal gross profit 45\% Beginning inventory 8,000 Net purchases 7,000 - Using the gross profit method,the amount of Gross profit would be:

A company that uses the periodic inventory method provides the following information: Beginning inventory \ 4,000 Net Purchases \ 85,000 At the end of the period,the company does an inventory count and finds $9,000 of inventory on hand. How much is the Cost of goods sold?

Which of the following principles are reflected in the lower-of-cost-or-market rule?

Which of the following assets must be reported at the lower-of-cost-or-market?

When a company uses the perpetual inventory method,which of the following would be the entry to adjust inventory to lower-of-cost-or-market?

Changing from the LIFO (Last-In,First-Out)to specific-identification method of valuing inventory ignores the:

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

Filters