Liberty University ACCT 221 Milestone 3

1 Based on this information, which of the following is the Cost of Goods Purchased? • $37,500 • $18,500 • $15,500 • $27,500 CONCEPT Expanded Income Statement 2 Which invent ...

1 Based on this information, which of the following is the Cost of Goods Purchased? • $37,500 • $18,500 • $15,500 • $27,500 CONCEPT Expanded Income Statement 2 Which inventory method was used to calculate cost of goods sold, based on the information above? CONCEPT Inventory Cost Flow Assumptions 3 Using the FIFO method and the list of inventory above, which of the following is the Cost of Goods Sold during January? CONCEPT FIFO 4 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? CONCEPT Merchandising 5 Which one of the businesses below would be best served by the periodic inventory method? CONCEPT Inventory Accounting Methods 6 Roberta sold goods costing $35,500, her expenses totaled $2,500 and her freight in totaled $750. Her company's average stock of goods during the same period was $9,500. The inventory turnover ratio for Roberta's company is . CONCEPT Merchandising Financial Statement Analysis 7 An expanded income statement is generally divided by the different categories of expenses. The most common categories are . • sales expenses and general and admin revenues • sales expenses and general expenses • sales revenues and general and admin expenses • sales expenses and general and admin expenses CONCEPT Expanded Income Statement 8 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? CONCEPT Merchandising: Purchases, Sales, Discounts, Returns and Allowance 9 Given the information provided above, what is the gross margin percentage? • 79% • 83% • 73% CONCEPT Merchandising Financial Statement Analysis 10 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? CONCEPT Merchandising: Purchases, Sales, Discounts, Returns and Allowance 11 What is calculated only at the end of a period in the periodic inventory method? • Sales returns and allowances CONCEPT Inventory Accounting Methods 12 Elijah currently has six strollers that he purchased for $235 each and four cribs that he purchased for $450 each on the floor of his baby supply store. He also has three strollers and two cribs in his storeroom. Using the weighted average cost method, what is the cost of each item being sold at Elijah's baby supply store? CONCEPT Weighted Average Method 13 Nora wants to reward customers who spent a minimum of $500 at her store each month over the last six months with a bottle of wine. Where would she find this information she needs to identify these customers? Purchases subsidiary ledger • Sales subsidiary ledger CONCEPT Sales & Purchases Subsidiary Ledger 14 Using the LIFO method and the information in this image, what is the Cost of Goods Sold during December? • $60,000 • $80,000 • $95,000 • $105,000 CONCEPT LIFO 15 What is the Total Cost of Goods Sold, according to the information in this image? • $162,850 • $162,500 CONCEPT Expanded Income Statement 16 Which one of the businesses below would most likely use the FIFO method of inventory valuation? CONCEPT Inventory Cost Flow Assumptions 17 Based on the information in the expanded income statement below, which of the following is the total of the Goods Available for Sale? • $47,000 • $35,000 • $37,000 CONCEPT Expanded Income Statement 18 If Tonya purchased 200 decorative pillows at $12 each and sold 75 of the pillows for $20 each, what is the cost of goods sold? • $2,400 • $1,500 • $900 • $1,100 CONCEPT Merchandising