1.) periodic system records the cost of the sale on the date the sale is made
2)
periodic system provides an easy means to determine inventory shrinkage
3)
periodic system determines the inventory on hand only at the end of the accounting period
4)
periodic system keeps a record showing the inventory on hand at all times
1)
Cost of Merchandise Available for Sale
2)
Cost of Merchandise Sold
3)
Purchases
4)
Merchandise Inventory
Question options:
1)
the buyer
2)
the seller
3)
either the buyer or the seller
4)
the customer
Question options:
1)
Delivery Expense
2)
Sales Salaries
3)
Advertising Expense
4)
Cost of Goods Sold?
Question options:
1)
debit Merchandise Inventory, $5,000; credit Cost of Merchandise Sold, $5,000
2)
debit Cost of Merchandise Sold, $5,000; credit Merchandise Inventory, $5,000
3)
debit Merchandise Inventory, $158,000; credit Cost of Merchandise Sold, $158,000
4)
debit Cost of Merchandise Sold, $163,000; credit Merchandise Inventory, $158,000
1)
Cash 10,000
Merchandise Inventory 10,000
?
Cost of Merchandise Sold 7,590
Sales 7,590
2)
Cash 10,000
Sales 10,000
?
Cost of Merchandise Sold 10,000
Merchandise Inventory 10,000
3)
Cash 10,000
Sales 10,000
?
Cost of Merchandise Sold 7,590
Merchandise Inventory 7,590
4)
Cash 7,590
Sales 7,590
?
Cost of Merchandise Sold 7,590
Merchandise Inventory 7,590
Sales 10,000
?
Cost of Merchandise Sold 7,590
Merchandise Inventory 7,590
1)
current liability
2)
long-term asset
3)
current asset
4)
long-term liability
Question options:
1)
statement of cash flows
2)
statement of owner’s equity
3)
income statement
4)
balance sheet
Question options:
1)
debit Cost of Merchandise Sold; credit Merchandise Inventory
2)
debit Merchandise Inventory; credit Cost of Merchandise Sold
3)
debit Accounts Receivable; credit Merchandise Inventory
4)
debit Cost of Merchandise Sold; credit Sales
Question options:
1)
$3,500
2)
$3,395
3)
$2,037
4)
$2,100
1)
$6,090
2)
$5,940
3)
$5,880
4)
$6,120
Question options:
1)
November 18
2)
November 10
3)
November 13
4)
November 20
Question options:
1)
Supplies Expense
2)
Cost of Merchandise Sold
3)
Merchandise Inventory
4)
Sales
Question options:
1)
in what is sold
2)
the inclusion of gross profit on the income statement
3)
accounting equation
4)
merchandise inventory included on the balance sheet
Question options:
1)
credit to Accounts Receivable
2)
credit to Merchandise Inventory
3)
debit to Merchandise Inventory
4)
debit to Sales
Question options:
1)
debit to Sales Discounts for $100
2)
debit to Accounts Receivable for $4,880
3)
debit to Cash for $5,000
4)
credit to Sales for $4,900
Question options:
1)
purchases discount
2)
sales discount
3)
payment discount
4)
trade discount
Question options:
1)
Accounts Receivable
2)
Accounts Payable
3)
Sales
4)
Merchandise Inventory
Question options:
1)
$194, May 15
2)
$194, May 16
3)
$97, May 15
4)
$97, May 16
Question options:
1)
Merchandise Inventory
2)
Sales
3)
Accounts Receivable
4)
Delivery Expense
Question options:
1)
cost of merchandise sold
2)
purchases returns and allowances
3)
net purchases
4)
purchases
Question options:
1)
sales invoice
2)
debit memo
3)
credit memo
4)
purchase invoice
Question options:
1)
$30,772
2)
$10,500
3)
$31,400
4)
$7,972
Question options:
1)
number of days in the discount period
2)
full amount of the invoice
3)
percent of the cash discount
4)
number of days when the entire amount is due
Question options:
1)
Accounts Payable
2)
Merchandise Inventory
3)
Accounts Receivable
4)
Purchases Returns and Allowances
Question options:
1)
only the sales tax
2)
only the list price
3)
the list price less the sales tax
4)
the list price plus the sales tax
Question options:
1)
Accounts Payable
2)
Sales
3)
Merchandise Inventory
4)
Interest Revenue
Question options:
1)
debit to Sales, debit to Credit Card Expense, and a credit to Cash
2)
debit to Cash and a credit to Sales
3)
debit to Cash, credit to Credit Card Expense, and a credit to Sales
4)
debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
Question options:
1)
cash on demand
2)
credit terms
3)
net cash
4)
gross cash
Question options:
1)
Accounts Receivable—Stanton, debit $20,000; Sales, credit $20,000, and
Delivery Expense, debit $500; Cash, credit $500
2)
Accounts Receivable—Stanton, debit $20,100; Sales, credit $20,100
3)
Accounts Receivable—Stanton, debit $20,000; Sales, credit $20,000
4)
Accounts Receivable—Stanton, debit $19,600; Sales, credit $19,600, and
Accounts Receivable—Stanton, debit $500; Cash, credit $500
Accounts Receivable—Stanton, debit $500; Cash, credit $500
Question options:
1)
gross profit
2)
net income
3)
gross sales
4)
income from operations
Question options:
1)
Accounts Payable
2)
Cost of Merchandise Purchased
3)
Merchandise Inventory
4)
Purchases
Question options:
1)
sales
2)
gross profit
3)
cost of merchandise available for sale
4)
cost of merchandise sold
Question options:
1)
debit Accounts Payable; credit Merchandise Inventory
2)
debit Merchandise Inventory; credit Purchases
3)
debit Merchandise Inventory; credit Cash Discounts
4)
debit Merchandise Inventory; credit Accounts Payable
Question options:
1)
$260
2)
$460
3)
$500
4)
$150
Question options:
1)
debit Cash, $1,250; credit Sales, $1,250
2)
debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250; credit Merchandise Inventory, $1,250
3)
debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250; credit Merchandise Inventory, $1,250
4)
debit Cash, $2,000; credit Merchandise Inventory, $1,250
Question options:
1)
Gross Profit
2)
Sales
3)
Fees Earned
4)
Gross Sales
Sales
$764,000
Selling Expenses
42,500
Cost of Merchandise Sold
538,000
1)
$226,000
2)
$183,500
3)
$721,500
4)
$495,500
Question options:
1)
quantity discounts
2)
sales discounts
3)
freight-in
4)
sales commissions
Question options:
1)
cash for $6,000
2)
sales for $6,240
3)
sales tax payable for $420
4)
sales for $5,580
Question options:
1)
comparative form
2)
account form
3)
horizontal form
4)
report form
Question options:
1)
FOB shipping point
2)
FOB n/30
3)
FOB seller
4)
FOB destination
Question options:
1)
0.29
2)
3.80
3)
3.00
4)
0.26
Question options:
1)
20%
2)
24%
3)
36%
4)
2%
Question options:
1)
credit to Sales
2)
credit to Accounts Payable
3)
debit to Cost of Merchandise Sold
4)
credit to Merchandise Inventory
Question options:
1)
service companies
2)
online retailers
3)
retailers
4)
wholesalers
Question options:
1)
sales plus selling expenses
2)
sales plus cost of merchandise sold
3)
sales less cost of merchandise sold
4)
sales less selling expenses
Question options:
1)
$24,990
2)
$16,000
3)
$26,010
4)
$25,500
Question options:
1)
$30,000
2)
$20,580
3)
$21,000
4)
$29,400
Question options:
1)
FOB buyer
2)
FOB shipping point
3)
FOB n/30
4)
FOB destination
Question options:
1)
statement of cash flows
2)
income statement
3)
balance sheet
4)
statement of owner’s equity
Question options:
1)
consigned
2)
FOB shipping point
3)
FOB destination
4)
n/30
1)
Accounts Payable—Emma Co., debit $15,750; Merchandise Inventory, debit $300; Cash, credit $16,050
2)
Accounts Payable—Emma Co., debit $15,000; Freight In, debit $750; Cash, credit $15,750
3)
Accounts Payable—Emma Co., debit $15,000; Cash, credit $15,000
4)
Accounts Payable—Emma Co., debit $15,450; Cash, credit $15,450
Question options:
1)
Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account.
2)
Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory.
3)
Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month.
4)
All of the answers are correct.
Question options:
1)
there is a difference between a physical count of inventory and inventory records
2)
merchandise is returned by a buyer
3)
merchandise purchased from a seller is incomplete or short
4)
merchandise is returned to a seller
1)
debit to Merchandise Inventory
2)
debit to Accounts Payable
3)
credit to Merchandise Inventory
4)
credit to Sales
Question options:
1)
usually requires more accounts than does the chart of accounts for a service business
2)
usually is standardized by the FASB for all merchandising businesses
3)
usually is the same as the chart of accounts for a service business
4)
always uses a three-digit numbering system
Question options:
1)
Sales Tax Payable
2)
Accounts Payable
3)
Sales
4)
Merchandise Inventory
Question options:
1)
Jan. 1 Purchases 1,500
Accounts Payable 1,500
2)
Jan. 1 Office Supplies 1,500
Cash 1,500
3)
Jan. 1 Merchandise Inventory 1,500
Cash 1,500
4)
Jan. 1 Cash 1,500
Accounts Receivable 1,500
Cash 1,500
Question options:
1)
the ultimate customer
2)
either the seller or the buyer
3)
the seller
4)
the buyer
Question options:
1)
FOB destination
2)
consigned
3)
n/30
4)
FOB shipping point
Question options:
1)
$24,900
2)
$29,400
3)
$30,000
4)
$24,990
Question options:
1)
debit to Cash
2)
credit to Customer Refunds Payable
3)
debit to Merchandise Inventory
4)
credit to Merchandise Inventory
Question options:
1)
Merchandise Inventory
2)
Drawing
3)
Accumulated Depreciation
4)
Cost of Merchandise Sold
Question options:
1)
accounting records continuously disclose the amount of inventory
2)
there is no need for a year-end physical count
3)
the purchase returns and allowances account is credited when goods are returned to vendors
4)
increases in inventory resulting from purchases are debited to Purchases
Question options:
1)
purchased units in transit, shipped FOB shipping point
2)
purchased units in transit, shipped FOB destination
3)
units on hand in the warehouse
4)
sold units in transit, not invoiced, and shipped FOB destination
Question options:
1)
$12,285
2)
$11,500
3)
$11,385
4)
$10,480
Question options:
1)
FOB shipping point
2)
consigned
3)
FOB destination
4)
n/30
Question options:
1)
administrative expenses
2)
other expenses
3)
general expenses
4)
selling expenses
Question options:
1)
administrative expenses
2)
miscellaneous expenses
3)
inventory expenses
4)
selling expenses
Question options:
1)
retail
2)
physical
3)
periodic
4)
perpetual
Sales
$764,000
Operating expenses
52,500
Cost of merchandise sold
538,000
Question options:
1)
$711,500
2)
$485,500
3)
$173,500
4)
$226,000
Question options:
1)
only net income, beginning capital, and withdrawals
2)
only net income, beginning and ending capital
3)
only total assets, beginning and ending capital
4)
beginning and ending capital and all the changes in the owner’s capital as a result of net income (loss), and withdrawals
Question options:
1)
revenue statement
2)
multiple-step statement
3)
single-step statement
4)
report-form statement
Question options:
1)
debit to Merchandise Inventory; a credit to Cash
2)
debit to Sales; a credit to Accounts Payable
3)
debit to Cash; a credit to Merchandise Inventory
4)
debit to Cash; a credit to Sales
Question options:
1)
sales returns
2)
sales when the credit card company remits the cash
3)
cash sales
4)
sales on account
Question options:
1)
Sales Returns and Allowances
2)
Purchase Discounts
3)
Cost of Merchandise Sold
4)
Sales
Question options:
1)
debit to Sales
2)
debit to Customer Refunds Payable
3)
debit to Estimated Returns Inventory
4)
credit to Sales
Question options:
1)
0.34
2)
2.92
3)
0.40
4)
2.69
Question options:
1)
July 30
2)
August 15
3)
August 29
4)
July 25
Question options:
1)
neither gross profit nor income from operations
2)
gross profit but not income from operations
3)
both gross profit and income from operations
4)
income from operations but not gross profit
Question options:
1)
does not take a discount
2)
journalizes a reimbursement to the seller
3)
makes no journal entry for the freight
4)
journalizes a reduction for the cost of the merchandise
Question options:
1)
LIFO
2)
specific identification
3)
weighted average
4)
FIFO
First purchase 25 units at $65
Second purchase 30 units at $68
Third purchase 15 units at $75
The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year.
What is the amount of the inventory at the end of the year using the LIFO method?
Question options:
1)
$1,805
2)
$1,575
3)
$3,815
4)
$1,685
Question options:
1)
retailer
2)
consignee
3)
shipper
4)
manufacturer
Question options:
1)
specific identification
2)
LIFO
3)
FIFO
4)
average
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
?The value of ending inventory using LIFO is
?
Question options:
1)
$1,250
2)
$1,375
3)
$1,150
4)
$1,350
Question options:
1)
average cost
2)
last-in, first-out
3)
retail method
4)
first-in, first-out
Question options:
1)
net income is understated
2)
cost of merchandise sold is understated
3)
merchandise inventory reported on the balance sheet is overstated
4)
net income is overstated
Question options:
1)
?the purchase order
2)
?the petty cash voucher
3)
the receiving report
4)
the vendor’s invoice
Question options:
1)
weighted average
2)
LIFO
3)
FIFO
4)
average cost
Question options:
1)
retail
2)
perpetual
3)
physical
4)
periodic
Question options:
1)
LIFO will result in a higher cost of merchandise sold than FIFO.
2)
Average costing will yield results that are between those of FIFO and LIFO.
3)
LIFO will result in higher income taxes than FIFO.
4)
FIFO will result in a higher net income than LIFO.
Question options:
1)
cost of merchandise sold is overstated
2)
gross profit is understated
3)
owner’s equity is overstated
4)
net income is understated
Question options:
1)
?prices remain stable
2)
?prices are reduced by 50%
3)
?prices are decreasing
4)
?prices are increasing
Question options:
1)
BI – P = COMS + EI
2)
BI + P = COMS + EI
3)
BI + P = COMS – EI
4)
EI + P = COMS – BI
Question options:
1)
?gross profit
2)
?ending merchandise inventory
3)
?number of items ordered
4)
?cost of goods sold
Question options:
1)
assets overstated by $70,000; retained earnings understated by $70,000; and no effect on the income statement
2)
assets and retained earnings overstated by $70,000; and net income understated by $70,000
3)
assets overstated by $70,000; retained earnings understated by $70,000; and net income statement understated by $70,000
4)
assets, retained earnings, and net income all overstated by $70,000
May 3 – Purchase 5 at $20
10 -Sale 3
17 – Purchase 10 at $24
20 – Sale 6
23 – Sale 3
30 – Purchase 10 at $30
?
Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
Question options:
1)
$120
2)
$180
3)
$108
4)
$72
Question options:
1)
debit Cost of Merchandise Sold; credit Sales
2)
debit Cost of Merchandise Sold; credit Merchandise Inventory
3)
debit Merchandise Inventory; credit Cost of Merchandise Sold
4)
No journal entry is made to record the cost of merchandise sold.
Question options:
1)
a ?petty cash voucher
2)
?a receiving report
3)
a ?vendor’s invoice
4)
?a purchase order
May 3 – Purchase 5 at $20
10 -Sale 3
17 – Purchase 10 at $24
20 – Sale 6
23 – Sale 3
30 – Purchase 10 at $30
Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the LIFO inventory cost method.
Question options:
1)
$120
2)
$180
3)
$136
4)
$144
Sep. 1 Inventory 20 units at $20
4 Sold 10 units
10 Purchased 30 units at $25
17 Sold 20 units
30 Purchased 10 units at $30
?
?
If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is
Question options:
1)
$750
2)
$700
3)
$650
4)
$800
Question options:
1)
Lowe’s
2)
Walmart
3)
Best Buy
4)
Gordon’s Jewelers
Question options:
1)
net income will be overstated
2)
net income will be understated
3)
no change to net income
4)
only gross profit will be affected
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory rounded to nearest dollar using average cost is:
Question options:
1)
$1,353
2)
$1,263
3)
$1,375
4)
$1,150
Question options:
1)
LIFO
2)
specific identification
3)
FIFO
4)
weighted average
4 Sold 10 units
10 Purchased 30 units at $20
17 Sold 20 units
30 Purchased 10 units at $21
Using a perpetual system, what is the cost of the merchandise sold for November if the company uses FIFO?
Question options:
1)
$580
2)
$610
3)
$600
4)
$590
Question options:
1)
?increased risk of loss due to damage
2)
?increased storage expense
3)
?lost sales
4)
?tied-up funds that could be used to improve operations
Question options:
1)
net income is understated, assets are understated, and owner’s equity is overstated
2)
net income is understated, assets are understated, and owner’s equity is understated
3)
net income is overstated, assets are overstated, and owner’s equity is overstated
4)
net income is overstated, assets are overstated, and owner’s equity is understated
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory using FIFO is
?
Question options:
1)
$1,150
2)
$1,375
3)
$1,250
4)
$1,350
Question options:
1)
average cost
2)
weighted average
3)
last-in, first-out
4)
first-in, first-out
Question options:
1)
LIFO and average cost
2)
FIFO and average cost
3)
FIFO and LIFO
4)
gross profit and average cost
4 Sold 10 units
10 Purchased 30 units at $20
17 Sold 20 units
30 Purchased 10 units at $21
Using a perpetual system, what is the cost of the merchandise sold for November if the company uses LIFO?
Question options:
1)
$600
2)
$580
3)
$610
4)
$590
Question options:
1)
?petty cash voucher
2)
?vendor’s invoice
3)
?purchase order
4)
?receiving report
First purchase 25 units at $32
Second purchase 30 units at $34
Third purchase 10 units at $35
?
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year rounded to nearest dollar according to the average cost method?
Question options:
1)
$690
2)
$659
3)
$655
4)
$620
Question options:
1)
average cost
2)
weighted average
3)
first-in, first-out
4)
last-in, first-out
Question options:
1)
ties up funds that could be used to improve operations
2)
increases the cost to safeguard the assets
3)
increases the losses due to price declines
4)
all of these
Question options:
1)
$135
2)
$75
3)
$60
4)
$15
Question options:
1)
?safeguarding inventory from damage and reporting inventory in the financial statements
2)
?safeguarding the inventory from damage and maintaining constant observation of the inventory
3)
?reporting inventory in the financial statements
4)
?maintaining constant observation of the inventory and reporting inventory in the financial statements
First purchase 25 units at $32
Second purchase 30 units at $34
Third purchase 10 units at $35
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the FIFO method?
Question options:
1)
$659
2)
$690
3)
$655
4)
$620
May 3 – Purchase 5 at $20
10 -Sale 3
17 – Purchase 10 at $24
20 – Sale 6
23 – Sale 3
30 – Purchase 10 at $30
Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.
Question options:
1)
$364
2)
$324
3)
$372
4)
$320
May 3 – Purchase 5 at $20
10 -Sale 3
17 – Purchase 10 at $24
20 – Sale 6
23 – Sale 3
30 – Purchase 10 at $30
Assuming that the company uses the perpetual inventory system, determine the Gross Profit for the month of May using the LIFO cost method.
Question options:
1)
$452
2)
$444
3)
$348
4)
$356
First purchase 15 units at $63
Second purchase 10 units at $74
Third purchase 10 units at $77
?
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year.
?
What is the amount of cost of good sold for the year according to the average cost method?
Question options:
1)
$1,375
2)
$1,510
3)
$1,380
4)
$1,250
Question options:
1)
a separate account for each type of merchandise is maintained in a subsidiary ledger
2)
a physical inventory is taken at the end of the period
3)
accounting records continuously disclose the amount of inventory
4)
merchandise inventory is debited when goods are returned to vendors
Sep. 1 Inventory 20 units at $20
4 Sold 10 units
10 Purchased 30 units at $25
17 Sold 20 units
30 Purchased 10 units at $30
?
?
If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is
Question options:
1)
$700
2)
$800
3)
$750
4)
$650
May 3 – Purchase 5 at $20
10 -Sale 3
17 – Purchase 10 at $24
20 – Sale 6
23 – Sale 3
30 – Purchase 10 at $30
Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the FIFO inventory cost method.
Question options:
1)
$180
2)
$144
3)
$120
4)
$136
Question options:
1)
average cost
2)
FIFO
3)
LIFO
4)
specific identification
First purchase 15 units at $63
Second purchase 10 units at $74
Third purchase 10 units at $77
?
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year.
?
What is the amount of cost of merchandise sold for the year according to the LIFO method?
Question options:
1)
$1,375
2)
$1,510
3)
$1,380
4)
$1,250
First purchase 25 units at $32
Second purchase 30 units at $34
Third purchase 10 units at $35
?
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the LIFO method?
Question options:
1)
$620
2)
$659
3)
$690
4)
$655
Question options:
1)
periodic
2)
average cost
3)
LIFO
4)
FIFO
Question options:
1)
LIFO
2)
FIFO
3)
average cost
4)
net realizable value
Question options:
1)
average cost
2)
FIFO
3)
weighted average
4)
LIFO
Question options:
1)
Kristin has sent merchandise to various retailers on a consignment basis.
2)
Kristin has merchandise on hand which has been returned by customers because of wrong size.
3)
Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin’s Boutique as of December 31.
4)
Kristin has in its warehouse merchandise on consignment from Abby Co.
Question options:
1)
understated
2)
overstated
3)
no change
4)
only inventory will be affected
Question options:
1)
average cost
2)
first-in, last-out
3)
last-in, first-out
4)
first-in, first-out
Question options:
1)
Storing inventory in restricted areas.
2)
Returning inventory that is defective or broken.
3)
Physical devices such as two-way mirrors, cameras, and alarms.
4)
Matching receiving documents, purchase orders, and vendor’s invoice.
May 3 – Purchase 5 at $20
10 -Sale 3
17 – Purchase 10 at $24
20 – Sale 6
23 – Sale 3
30 – Purchase 10 at $30
?Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method.
Question options:
1)
$324
2)
$372
3)
$320
4)
$364
Question options:
1)
understated
2)
overstated
3)
correctly stated
4)
none of these
Question options:
1)
is not necessary when a periodic inventory system is used
2)
should be done near year-end
3)
is not necessary when a perpetual inventory system is used
4)
has no internal control relevance
Question options:
1)
inventory ledger
2)
customer’s ledger
3)
purchase ledger
4)
creditor’s ledger
First purchase 25 units at $65
Second purchase 30 units at $68
Third purchase 15 units at $75
The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year.
What is the amount of the inventory at the end of the year using the FIFO method?
Question options:
1)
$1,685
2)
$1,805
3)
$3,585
4)
$1,575
First purchase 25 units at $65
Second purchase 30 units at $68
Third purchase 15 units at $75
The firm uses the periodic system and there are 25 units of the commodity on hand at the end of the year.
What is the amount of the inventory at the end of the year rounded to nearest dollar using the average cost method?
Question options:
1)
$1,685
2)
$1,575
3)
$3,705
4)
$1,805
Question options:
1)
check the invoice to the purchase order
2)
check the invoice extensions and totals
3)
check the invoice with the person who specifically purchased the item
4)
check the invoice to the receiving report
First purchase 15 units at $63
Second purchase 10 units at $74
Third purchase 10 units at $77
?
The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year.
What is the amount of cost of merchandise sold for the year according to the FIFO method?
Question options:
1)
$1,375
2)
$1,380
3)
$1,510
4)
$1,250