ACC 100 Unit 3 Milestone Sophia course ACC100 Unit 3 Milestone Sophia course

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1 Based on this information, which of the following is the Cost of Goods Purchased?

$27,500

$37,500

$15,500

$18,500

Expanded Income Statement 2

Using the LIFO method and the information in this image, what is the Cost of Goods Sold during December?


$60,000

$105,000

$95,000

$80,000

LIFO 3 Adam has 40 T-8 light fixtures that he purchased for $12 each and 240 T-5 light fixtures that he purchased for $16 each on the floor of his lighting supply store. He also has 80 T-8 fixtures and 120 T-5 fixtures in his warehouse.

What is the unit cost of the light fixtures if Adam implements the weighted average inventory valuation method?

$12.00

$13.00

$16.00

$15.00


Weighted Average Method 4 Acme Furniture purchased 10 desks for $100 each and paid the invoice in full within 20 days, which reduced the price of each desk to $90.

Which of the following amounts would be recorded in the purchases account of Acme Furniture?

$100

$900

$1,000

$200

Merchandising: Purchases, Sales, Discounts, Returns and Allowance 5

Given the information in the partial income statement below, what is the cost of goods sold?

$53,500

$68,000


$50,000

$45,500

Expanded Income Statement 6

Given the information above, what is the Gross Profit?

$578,200

$445,500

$486,300

$419,200

Merchandising Financial Statement Analysis 7

Which inventory method was used to calculate cost of goods sold, based on the information above?


Weighted average

Specific ID

LIFO

FIFO

Inventory Cost Flow Assumptions 8 Brett agreed to the freight on board (FOB) destination method for an order of t-shirts that is ready to ship. The freight is in New York, at the port of distribution, to be delivered to Brett's clothing store in Pennsylvania.

Who owns the freight at the loading docks in New York?

Brett

The shipping company

The supplier

Brett's customer

Merchandising 9


Which of the following statements descries periodic inventory?

Computerized calculation of goods sold updated in real time

Physical inventory count and calculation of goods sold updated in real time

Computerized calculation of goods sold done at the end of the period

Physical inventory count and calculation of goods sold done at the end of the period

Inventory Accounting Methods 10

Based on the information in the expanded income statement below, which of the following is the total of the Goods Available for Sale?

$35,000

$37,000

$72,000

$47,000


Expanded Income Statement 11 This month, Julia paid $2.50 each for 125 dog collars. She sold 72 dog collars for $5.95 each.

What is Julia's cost of goods sold for this month?

$180.00

$428.40

$312.50

$215.00

Merchandising 12

Compute the correct Cost of Goods Sold in September using the FIFO method, based on the information in the table above.

$2,630


$1,805

$3,910

$1,865

FIFO 13 Susan's Stationery sold goods that cost $42,000, and had expenses that totaled $5,600. The average stock of goods in a year ending December 31 was $7,500.

What is Susan’s Stationery inventory turnover ratio in a year ending December 31?

7.50

4.67

6.25

5.60

Merchandising Financial Statement Analysis 14 An expanded income statement is generally divided by the different categories of expenses.

The most common categories are __________.


sales expenses and general expenses

sales expenses and general and admin expenses

sales expenses and general and admin revenues

sales revenues and general and admin expenses

Expanded Income Statement 15 Ann bought three sweaters online. Each of the sweaters was normally priced at $75. She received a sales discount for paying for her sweaters in full within 10 days. She ultimately paid $180 for all three.

Which discount percentage did she receive?

10%

25%

20%

5%

Merchandising: Purchases, Sales, Discounts, Returns and Allowance


16 Which one of the businesses below would most likely use the FIFO method of inventory valuation?

A car dealership

A jewelry store

An art gallery

A grocery store

Inventory Cost Flow Assumptions 17 Which business below uses a perpetual inventory method?

An antique shop

A pet food store

A boat store

A car dealership

Inventory Accounting Methods 18


Which of the following scenarios would use a purchases subsidiary ledger?

Trudy wants to know which suppliers have raised their prices in the past year.

John wants to identify his top 20 customers.

Ann Marie wants to determine whether to extend more credit to a customer.

Maybelle wants to know which customers have been late on their payments.

Sales & Purchases Subsidiary Ledger 1 Which business below uses a perpetual inventory method?

An antique shop

A pet food store

A boat store

A car dealership


Inventory Accounting Methods 2 Which one of the businesses below would most likely use the FIFO method of inventory valuation?

A grocery store

A jewelry store

A car dealership

An art gallery

Inventory Cost Flow Assumptions 3 If Kevin purchased 175 candles at $3 each and sold 90 candles for $7 each, which of the following is his cost of goods sold?

$735


$525

$270

$630

Merchandising 4 Adam has 40 T-8 light fixtures that he purchased for $12 each and 240 T-5 light fixtures that he purchased for $16 each on the floor of his lighting supply store. He also has 80 T-8 fixtures and 120 T-5 fixtures in his warehouse.

What is the unit cost of the light fixtures if Adam implements the weighted average inventory valuation method?

$15.00

$16.00


$12.00

$13.00

Weighted Average Method 5 Charlie's order of shoes is the freight at the manufacturer's warehouse in Hong Kong, and he has agreed to the FOB shipping point method.

Who owns the freight when the shoes are at the Hong Kong loading docks, ready to be shipped to New York?

Charlie

The shipping company

Charlie’s customer


The supplier

Merchandising 6 Vern uses a perpetual inventory method at his store. This means that purchases are debited to his merchandise inventory.

Which of the following is credited to his merchandise inventory?

Net sales

Cost of goods sold

Purchase returns

Owner’s equity


Inventory Accounting Methods 7

Given the information provided above, what is the gross margin percentage?

79%

83%

71%

73%

Merchandising Financial Statement Analysis 8 In 2011, Matt's hunting store sold goods that cost $89,000, and had expenses that totaled $12,000. His average stock of goods during 2011 was $45,000.

Which of the following is Matt’s hunting store inventory turnover ratio in 2011?

3.75


1.71

6.42

1.98

Merchandising Financial Statement Analysis 9

Which inventory method was used to calculate cost of goods sold, based on the information above?

FIFO


Specific ID

Weighted average

LIFO

Inventory Cost Flow Assumptions 10 Which of the following scenarios would use a purchases subsidiary ledger?

Trudy wants to know which suppliers have raised their prices in the past year.

Ann Marie wants to determine whether to extend more credit to a customer.

Maybelle wants to know which customers have been late on their payments.

John wants to identify his top 20 customers.


Sales & Purchases Subsidiary Ledger 11

Based on this information in this partial income statement, what is the total of the Goods Available for Sale?

$90,000

$65,300

$87,800

$83,000


Expanded Income Statement 12 An expanded income statement is generally divided by the different categories of expenses.

The most common categories are __________.

sales revenues and general and admin expenses

sales expenses and general and admin expenses

sales expenses and general and admin revenues

sales expenses and general expenses

Expanded Income Statement 13 Which of the following is the additional percentage that a shoe store discounted the price of a pair of boots that were originally priced at $175, marked down to $125, and finally sold for $100?

30%


15%

20%

25%

Merchandising: Purchases, Sales, Discounts, Returns and Allowance 14 Anne Marie went to a merchandisers' market on January 6th and purchased 25 coffee tables at $62 each. The terms of payment of the invoice were 2% 10, Net 30. When she returned to her office on January 10th, she wrote out and mailed a check to pay the invoice.

What amount will Anne Marie record in her purchases account?

$1,519

$1,804


$1,835

$1,550

Merchandising: Purchases, Sales, Discounts, Returns and Allowance 15

Using the FIFO method and the information in this image, what is the Cost of Goods Sold during December?

$80,000

$95,000

$65,000

$60,000


FIFO 16

Given the information below, which of the following is the Total Cost of Goods Sold?

$78,900

$81,100

$80,600

$81,300

Expanded Income Statement 17

Using the LIFO method and the information in this image, what is the Cost of Goods Sold during December?


$60,000

$95,000

$80,000

$105,000

LIFO 18

Based on this information, which of the following is the Cost of Goods Purchased?

$27,500


$37,500

$15,500

$18,500

Expanded Income Statement


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