1 . A firm’s beginning inventory is $36,000, goods purchased during the period c
ID: 2465012 • Letter: 1
Question
1 . A firm’s beginning inventory is $36,000, goods purchased during the period cost $121,000, and the cost of goods sold for the period is $141,000. What is the amount of its ending inventory?
A) $46,000
B) $20,000
C) $26,000
D) $16,000
2.
Your store buys ice cream at a cost of $6.00 a half gallon and sells it for $13.00 a half gallon. Selling, general, and administrative expenses are $2.55 per half gallon. Which of the following statements is correct?
B) Your gross profit per half gallon is $4.45.
C) Your gross profit per half gallon is $7.00.
D) The difference between the selling price and the cost is recorded in the gross profit account.
3.
Required information
A) $95,400
B) $111,000
C) $103,200
D) $90,200
4.
Beginning inventory plus purchases equals:
A) ending inventory.
B) cost of goods sold.
C) goods available for sale.
D) net purchases.
5.
Thompson Company had beginning inventory of $6,000, cost of goods sold of $14,000, and ending inventory of $8,000. Purchases were:
A) $12,000.
B) $10,000.
C) $9,000.
D) $16,000.
Your store buys ice cream at a cost of $6.00 a half gallon and sells it for $13.00 a half gallon. Selling, general, and administrative expenses are $2.55 per half gallon. Which of the following statements is correct?
Explanation / Answer
1.
=(biginning inventory+purchases)-cost of good sold=ending inventory
=($36,000+$121,000)-$141,000
=$157,000-$141,000
$16,000
Option D Correct
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2.
The difference between the selling price and the cost is recorded in the gross profit account.
Option D Correct
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3.
(c)
=sales revenue-sales discount-sales returned and allowances- Cost Goods Sold
=[$375,000-$4,900-$2,900]-$264,000
=[$375,000-$7,800]-$264,000
=$367,200-$264,000
=$103,200
Option C correct
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4.
Beginning inventory plus purchases equals= goods available for sale
Option C correct
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5
=(beginning+purchases)-cost of good sold
=$6,000+purchase-$14,000=$8,000
purchase=$8,000+$8,000
=$16,000
Option D correct
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