Exam 7: Inventories and Cost of Goods Sold

Garcia Company will buy merchandise from one of the following suppliers. Assume the company takes all discounts.What is the total cost for each supplier? Which supplier should it buy from?

A company purchased $6,000 of merchandise.Transportation costs were an additional $100.The company returned $250 of the merchandise and then paid the invoice within the 2% discount period.What is the total amount of cash paid?

A merchandise company's beginning inventory plus merchandise purchases minus ending inventory equals:

Garcia Company will buy merchandise from one of the following suppliers.

Meanmocha Hardware has a periodic inventory system and uses the weighted average method.The company began the month of November with 150 large brass switch plates on hand at a cost of $4.00 each.These switch plates sell for $7.00 each.The following schedule sets forth the purchases of switch plates during November: A.$1,046. B.$1,482. C.$1,516. D.$1,528.

Which of the following statements is not true about accounts payable?

The Acme Corporation buys 300 units of merchandise in January at $5 each.In February,Acme buys 500 units at $4 each and in March it buys 200 units at $6 each.Acme sells 150 units during this quarter.What is the cost of goods sold under the FIFO method?

An overstatement of ending inventory will cause an overstatement of assets and an understatement of stockholders' equity on the balance sheet.

Which of the following statements is true?

In a perpetual inventory system,paying transportation charges on goods purchased FOB shipping point would have which of the following effects?

The specific identification method would probably be most appropriate for which of the following goods?

Use the following information to determine the amount of purchases for the period.

Days to sell is calculated as:

Which of the following statements regarding comparisons made in managing inventory is not true?

When the lower of cost or market (LCM)rule requires an inventory adjustment: