Evaluate cost of goods sold for the month

Assignment Help Accounting Basics
Reference no: EM13840310

1. On July 9, Sheb Company sells goods on credit to Wooley Company for $5,000, terms 1/10, n/60. Sheb receives payment on July 18. The entry by Sheb on July 18 is:

A) Cash 5,000
Accounts Receivable 5,000

B) Cash 5,000
Sales Discounts 50
Accounts Receivable 4,950

C) Cash 4,950
Sales Discounts 50
Accounts Receivable 5,000

D) Cash 5,050
Sales Discounts 50
Accounts Receivable 5,000

2. The collection of a $1,000 account after the 2 percent discount period will result in a

A) debit to Cash for $980.
B) credit to Accounts Receivable for $1,000.
C) credit to Cash for $1,000.
D) debit to Sales Discounts for $20.

3. Gross profit does not appear

A) on a multiple-step income statement.
B) on a single-step income statement.
C) to be relevant in analyzing the operation of a merchandiser.
D) on the income statement if the periodic inventory system is used because it cannot be calculated.

4. During 2014, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000.

Parker's gross profit is
A) $24,000.
B) $27,000.
C) $45,000.
D) $90,000.

5. At the beginning of September, 2014, Stella Company reported Inventory of $8,000. During the month, the company made purchases of $35,600. At September 30, 2014, a physical count of inventory reported $8,400 on hand. Cost of goods sold for the month is

A) $35,200.
B) $35,600.
C) $36,000.
D) $43,600.

6. The Freight-In account

A) increases the cost of merchandise purchased.
B) is contra to the Purchases account.
C) is a permanent account.
D) has a normal credit balance.

7. A company purchased inventory as follows:
150 units at $5
350 units at $6

The average unit cost for inventory is
A) $5.00.
B) $5.50.
C) $5.70.
D) $6.00.

8. A company just starting business made the following four inventory purchases in June:

June 1 150 units $ 390
June 10 200 units 585
June 15 200 units 630
June 28 150 units 510
$2,115

A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
A) $683.
B) $825.
C) $1,290.
D) $1,432.

PART II - BASIC INVENTORY COMPUTATIONS

9. Joe Poultry uses a periodic inventory system. Its beginning inventory on May 1 consisted of 300 units of Product A at a cost of $6.25 per unit. During May, the following purchases and sales were made.

Purchases Sales
May 6 300 units at $7.20 May 4 275 units
14 400 units at $9.10 8 300 units
21 100 units at $11.50 22 400 units
28 500 units at $11.80 24 225 units
1,300 1,200

Instructions: Compute the May 31 ending inventory and May cost of goods sold under (a) Average Cost, (b) FIFO, and (c) LIFO. Provide appropriate supporting calculations.

1. Average - Ending Inventory = $ ____; Cost of Goods Sold = $ ____.

2. FIFO - Ending Inventory = $ ____; Cost of Goods Sold = $ ____.

3. LIFO - Ending Inventory = $ ____; Cost of Goods Sold = $ ____.

Instructions: Given the information provided below, prepare a bank reconciliation in proper format for the month of April for Hanlon Mowers.

1. Balance per Bank on April 30-$20,601

2. Balance per Books on April 30-$19,262

3. Total outstanding checks at April 30-$2,180

4. Debit memoranda:
a. NSF check from Watts Co.-$475
b. Printing company checks-$45
c. Payment to bank of $1,200 note owed bank by Hanlon Mowers plus $100 interest.

5. Credit memorandum: Collection of note receivable for $1,600 plus $240 interest less $50 collection fee.

6. Errors:
a. A check written this month to Pharm Co. for office supplies cleared the bank at the correct amount of $420, but was recorded by Hanlon at $240.
b. The bank charged a $270 check of Atrin Company against Hanlon's account this month.

7. Deposit in transit on April 30-$361.

8. Bank Reconciliation

Reference no: EM13840310

Questions Cloud

Find the optimum of the consumer : Suppose a consumer live two periods, in the first have an income m1 = 30 and in the second an income of m2 = 20. Suppose the interest rate is 10% and can borrow and lend at that interest rate. What is the maximum quantity he can consume in the second..
Analyze the apple case within the political frame : Utilizing your previous knowledge/experience with different organizations,compare Jobs with at least two other business leaders, analyzing the relationship between each leader's power and influence inside and outside of their organizations. Analyz..
Calculate the optimal quantity and the new consumer surplus : Let the inverse demand curve for tennis classes is: P = 90 - 1.5Q.  If the equilibrium price is $15, calculate the optimal quantity and the consumer surplus. If price increase to $30, calculate the optimal quantity and the new consumer surplus.
Sells price-elastic products or price-inelastic products : Think of another good that you have purchased recently Be specific (e.g. is it breakfast cereal in general or Cheerio’s cereal specifically). If the price of this item increases, how would this affect the quantity of the good that you consume? Would ..
Evaluate cost of goods sold for the month : During 2014, Parker Enterprises generated revenues of $90,000. The company's expenses were as follows: cost of goods sold of $45,000, operating expenses of $18,000 and a loss on the sale of equipment of $3,000.
Analyse one advertisement to a luxury resort : You select a campaign that deals with holidays and then analyse one advertisement to a luxury resort using the ideas of social status and the ways the campaign seeks to attract a particular psychographic group.
Briefly describe each psychological skill that you selected : Briefly describe each psychological skill that you selected, and explain why each is an important skill for the police professional. Analyze the impact of the forensic psychology professional on the effectiveness of police professionals. Be specif..
The cost of pollution reduction to each firm : Typically, the government would not know the cost of pollution reduction for each firm. If the government decided to reach its overall goal by imposing IDENTICAL pollution reductions on the firms, calculate the reduction made by each firm, the cost o..
Show the profit-maximizing price and quantity : Show the profit-maximizing price and quantity. Show the producer and consumer surplus. Show the deadweight loss from monopoly. What is the implied competitive equilibrium? Is the firm operating at a profit or a loss (how do we know)? If it’s operatin..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Bill and mary plan to marry in december of 2012 bills

bill and mary plan to marry in december of 2012. bills salary is 32000 and he owns a residence. his itemized deductions

  Abc company uses cash-basis accounting for its records

abc company uses cash-basis accounting for its records. during 2010 abc collected 400000 from its customers made

  Adam borrows 4500 at 12 percent annually compounded

1. adam borrows 4500 at 12 percent annually compounded interest to be repaid in four equal annual installments. the

  Pursuant to a complete liquidation in the current year

pursuant to a complete liquidation in the current year oriole corporation distributes to samantha land held for four

  The can division of fruit products inc manufactures and

the can division of fruit products inc. manufactures and sells tin cans externally for 0.30 per can. its unit variable

  Calculate the correct balance of cash

Calculate the correct balance of cash at the end of March.

  A company is considering purchasing an asset for 56000 that

a company is considering purchasing an asset for 56000 that would have a useful life of 10 years and would have a

  The bootsie holding company has sales exceeding 10 billion

the bootsie holding company has sales exceeding 10 billion and each of its three wholly-owned subsidiaries has sales

  Speedy parcel service operates a fleet of delivery trucks

speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the companys

  Determine the ending balance of aaa

She receives a $6,000 distribution, and her share of S corporation items includes a $2,000 long-term capital gain and a $9,000 ordinary loss. Determine the ending balance of AAA, stock basis, and AEP.

  Posson catering uses two measures of activity jobs and

can someone help with my accounting homework problem?posson catering uses two measures of activity jobs and meals in

  Your company is going to replace the legacy payroll system

you are the manager of a payroll system. your company is going to replace the legacy payroll system with a more robust

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd