Exam 5: Inventories and Cost of Goods Sold

Moving average is the name given to the use of an average cost method used with a periodic inventory system.

Readers.com uses a perpetual inventory system. feb. 1 On hand, 30 units at \ 5.00 each \ 150 8 Purchased 40 units at \ 5.35 each 214 15 Sold 50 units 22 Purchased 40 units at \ 5.20 each 208 28 On hand, 60 units If Readers.com uses the moving average method, how much is cost of goods sold for the units sold on February 15?

Which one of the following would not be found as an asset on the balance sheet of a manufacturer?

If a change in accounts payable was added back to net income on the statement of cash flows prepared using the indirect method, then the amount owed to suppliers during the period had decreased.

Gently Used Cars is a dealer that uses the periodic inventory system.The data presented below is from the accounting records of Gently for the year ended December 31, 2016. Sales \ 585,000 Sales Discounts 3,000 Purchases 420,000 Purchase Returns 5,000 Inventory (January 1) 33,000 Inventory (December 31) 37,000 Operating Expenses 146,000 Transportation-in 10,000 Retained Earnings (January 1) 71,000 ​ Using the amounts provided above, calculate the cost of goods sold for 2016.

The understatement of ending inventories in one period leads to a(n) ____________________ of cost of goods sold expense in the same period.

Under the ____________________ method, the amount of cash paid to suppliers of inventory is shown as a deduction in the operating activities category of the cash flow statement.

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 ? How many units did Roki, Inc.sell during June?

Hound Dog Bisquits reported the following financial data for 2016 and 2017: 2016 2017 Sales \ 700,000 \ 600,000 Sales returns and allowances (10,000) (D) Net sales Cost of goods sold. Inventory, January 1 30,000 Net purchases 340,000 Goods available for sale 250,000 380,000 Inventory, December 31 (30,000) Cost of goods sold B F Gross profit C G --- --- Provide the answer for each missing letter above.

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. ​ When did title to the merchandise transfer from Jay Zee Music Company to Park?

Adam Inc.uses a perpetual inventory system. Jan. 1 On hand, 10 units at \ 2 each \ 20 4 Sold 8 units for \ 10 each 80 22 Purchased 50 units at \ 4 each 200 26 Sold 48 units for \ 10 each 480 If Adam uses the FIFO method, how much is cost of goods sold for the month of January?

Quan uses a periodic inventory system.At the end of April, Quan had 20 units on hand. April 1 On hand, 10 units @\ 2 each \ 20 19 Purchased 90 units @\ 3 each \ 270 Goods available for sale \ 290 ? If Quan, Inc.uses FIFO inventory costing, how much is cost of goods sold for April?

Match the costs that might be included as part of the cost of inventory to the listed accounting treatment. -Excise taxes paid on goods acquired

Many companies assign only the net invoice price for merchandise to inventory and cost of goods sold.All other costs, including transportation and other costs of bringing merchandise to the place of business, are charged to expense of the period in which they are incurred.Which accounting principle or concept is applied in this example?

Takenson Corp.is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: Sales \ 500,000 Purchases 225,000 Inventory (beginning) 16,000 Inventory (ending) 30,000 Operating Expenses 148,000 Income Tax Expense 10,000 Retained Earnings (beginning) 53,000 Dividends 15,000 -Refer to information for Takenson Corp. Calculate the cost of goods sold for Takenson Corp.

Gross margin as a percentage of sales is a common analytical tool for service companies.

All of the following statements regarding the gross profit ratio are true except:

Identify which inventory costing method (LIFO or FIFO) achieves the effect listed in the following items: -Prices are rising; profits are higher with this method.

Adam Inc.uses a perpetual inventory system. Jan. 1 On hand, 10 units at \ 2 each \ 20 4 Sold 8 units for \ 10 each 80 22 Purchased 50 units at \ 4 each 200 26 Sold 48 units for \ 10 each 480 If Adam uses the LIFO method, how much is cost of goods sold for the month of January?

Cost of goods sold is equal to beginning inventory plus the net cost of purchases minus _________________________.