Roki Inc.uses the periodic inventory system. June $\begin{array}{rlr} 1 & \text { On hand, 50 units @ \$15.00 each } & \$ 750.00 \\ 5 & \text { Purchased 115 units @, \$15.10 each } & 1,736.50 \\ 14 & \text { Purchased 75 units @ \$15.20 each } & \underline{1,140.00} \\ & \text { Total cost of goods available for sale } & \underline{\$ 3.626 .50}\\ 30&\text { On hand, } 90 \text { units }\\ \end{array}$ ? If Roki uses the FIFO inventory method, the amount assigned to the June 30 inventory would be

A) $1,354.00 B) $1,590.42 C) $1,594.00 D) $1,366.50 A) $1,354.00 B) $1,590.42 C) $1,594.00 D) $1,366.50

Presented below is a partially completed income statement of Lake, Inc.for 2016. $\begin{array}{lr} \text { Net Sales } & \$\mathbf{A} \\ \text { Cost of Sales: } & \\ \text { Beginning Inventory } & \mathbf{B} \\ \text { Net Purchases } & \underline{138,193} \\ \text { Available for Sale } & 149,315\\ \text { Less: Ending Inventory } & \mathbf{C} \\ \text { Cost of Sales } & \underline{136,225} \\ \text { Gross Profit } &{72,978} \\ \text { Selling, General and Administrative Expenses } & \mathbf{D} \\ \text { Operating Income }&\underline{\$ 9,083}\\ \end{array}$Using the partially completed income statement for Lake, Inc., determine each of the following for 2016. A) Net Sales B) Beginning Inventory C) Ending Inventory D) Selling, General and Administrative Expenses

The answer of Presented below is a partially completed income...

George's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: \[\begin{array} { l r } \text { Sales } & \$ 200,000 \\ \text { Purchases } & 90,000 \\ \text { Inventory (beginning) } & 23,000 \\ \text { Inventory (ending) } & 17,000 \\ \text { Purchase returns and allowances } & 3,000 \\ \text { Purchase discounts } & 7,000 \\ \text { Transportation-in } & 4,000 \\ \text { Sales discounts } & 8,000 \\ \text { Sales returns and allowances } & 5,000 \end{array}\] -Refer to the account information for George's Department Store. ? Calculate George's net sales.

A) $200,000 B) $187,000 C) $195,000 D) $192,000 A) $200,000 B) $187,000 C) $195,000 D) $192,000

Exam 5: Inventories and Cost of Goods Sold

Roki Inc.uses the periodic inventory system. June 1 On hand, 50 units @ \1 5.00 each \ 750.00 5 Purchased 115 units @, \1 5.10 each 1,736.50 14 Purchased 75 units @ \1 5.20 each Total cost of goods available for sale 30 On hand, 90 units ? If Roki uses the FIFO inventory method, the amount assigned to the June 30 inventory would be

(Multiple Choice)

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Question 41

Maxim Company sells auto parts.The company employs a periodic inventory system.Identify all the effects on the accounting equation. -Granted a customer a credit on its balance due for goods that were returned.

(Multiple Choice)

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Question 42

Park, Inc.purchased merchandise from Jay Zee Music Company on June 5, 2016.The goods were shipped the same day.The merchandise's selling price was $15,000.The credit terms were 1/10, n/30.The shipping terms were FOB shipping point.Park received the merchandise on June 10, 2016.Park paid the amount due on June 13, 2016. Park uses the periodic inventory system.What effect does recording the purchase of merchandise on June 5, 2016 have on Park's accounting equation?

(Multiple Choice)

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Question 43

Under FIFO, the units in the ending inventory represent the oldest purchase(s).

(True/False)

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Question 44

Presented below is a partially completed income statement of Lake, Inc.for 2016. Net Sales mathbf A Cost of Sales: Beginning Inventory Net Purchases Available for Sale 149,315 Less: Ending Inventory Cost of Sales Gross Profit 72,978 Selling, General and Administrative Expenses Operating Income Using the partially completed income statement for Lake, Inc., determine each of the following for 2016. A) Net Sales B) Beginning Inventory C) Ending Inventory D) Selling, General and Administrative Expenses

(Essay)

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Question 45

According to the IRS's LIFO conformity rule, a company that chooses LIFO to report net income to its shareholders may not use LIFO in preparing its income tax return.

(True/False)

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Question 46

George's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: Sales \ 200,000 Purchases 90,000 Inventory (beginning) 23,000 Inventory (ending) 17,000 Purchase returns and allowances 3,000 Purchase discounts 7,000 Transportation-in 4,000 Sales discounts 8,000 Sales returns and allowances 5,000 -Refer to the account information for George's Department Store. ? Calculate George's net sales.

(Multiple Choice)

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Question 47

During the current period, Mercado Corp.sold products to customers for a total of $76,000.Due to defective products, customers were given $2,800 in refunds for products that were returned and another $3,500 in reductions to their account balances.Discounts in the amount of $5,500 were given for early payment of account balances. Prepare the Net Sales section of Mercado's income statement.

(Essay)

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Question 48

At the year end inventory count, if goods in transit are shipped FOB destination, they should be included in the inventory count of

(Multiple Choice)

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Question 49

A company fails to record one storeroom full of inventory in its year-end inventory records.As a result, this will cause:

(Multiple Choice)

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Question 50

Under the ____________________ method, an increase in inventory is shown as an adjustment to net income in the operating activities category of the cash flow statement.

(Short Answer)

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Question 51

When a weighted average cost assumption is applied with a perpetual system, it is sometimes called a __________________.

(Short Answer)

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Question 52

Which method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income?

(Multiple Choice)

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Question 53

A counterbalancing inventory error is one where the error on the balance sheet is offset by the same amount of error on the income statement.

(True/False)

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Question 54

Which one of the following statements regarding the application of the lower of cost or market method is true?

(Multiple Choice)

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Question 55

Payment for the acquisition of inventories is shown on the statement of cash flows as

(Multiple Choice)

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Question 56

Which one of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of a service company?

(Multiple Choice)

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Question 57

If the direct method is used to prepare the Operating Activities category of the statement of cash flows, the amount of cash paid to suppliers of inventory is shown as an addition in this section of the statement.

(True/False)

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Question 58

Purchase returns and allowances is subtracted from cost of goods sold to determine net purchases.

(True/False)

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Question 59

Cost of goods sold is the difference between costs available for sale and beginning inventory.

(True/False)

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Question 60

Showing 41 - 60 of 225

Maxim Company sells auto parts.The company employs a periodic inventory system.Identify all the effects on the accounting equation. -Granted a customer a credit on its balance due for goods that were returned.

Under FIFO, the units in the ending inventory represent the oldest purchase(s).

According to the IRS's LIFO conformity rule, a company that chooses LIFO to report net income to its shareholders may not use LIFO in preparing its income tax return.

At the year end inventory count, if goods in transit are shipped FOB destination, they should be included in the inventory count of

A company fails to record one storeroom full of inventory in its year-end inventory records.As a result, this will cause:

Under the ____________________ method, an increase in inventory is shown as an adjustment to net income in the operating activities category of the cash flow statement.

When a weighted average cost assumption is applied with a perpetual system, it is sometimes called a __________________.

Which method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income?

A counterbalancing inventory error is one where the error on the balance sheet is offset by the same amount of error on the income statement.

Which one of the following statements regarding the application of the lower of cost or market method is true?

Payment for the acquisition of inventories is shown on the statement of cash flows as

Which one of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of a service company?

If the direct method is used to prepare the Operating Activities category of the statement of cash flows, the amount of cash paid to suppliers of inventory is shown as an addition in this section of the statement.

Purchase returns and allowances is subtracted from cost of goods sold to determine net purchases.

Cost of goods sold is the difference between costs available for sale and beginning inventory.

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