Question

Accounting questions

cost of goods available for sale is computed by adding

9. Cole Company has sales revenue of $39.500,cost of u s sold ASTA300 and operating expenses of 9.00 for the year endes December 31. Cole's ons profit is A) 503 ) 515500. C) 539550D) 56.500 10. The credit terms offered to a customer by a business firm are 2/10, 1/30, which means that A) the customer must pay the bill within 10 days 13) the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date C) the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. D) fwo sales returns can be made within 10 days of the invoice date and no returns thereafter As a result of a thorough physical inventory. Hastings Company determined that it had inventory worth $270,000 December This count did not include the following facts: Carlin Consignment store currently has goods worth 552.000 on its sales floor that belong to Hastings but are being sold on consignment by Carlin The selling price of these goods is S75.000. Determine the correct amount of inventory that Hastings should report A) $270,000. B) 5322.000. C) 5345.000. D) $342.000, 12. During the prior year, Wu Han Co generated revenues of 595,000. The company's expenses were as follows: cost of goods sold of 547,000, operating expenses of $16,000 and a loss on the sale of equipment of 55,000. Calculate Wu Han's net income: 00 A) $27.000. B) $32,000. C) 548,000. $48.000. D) 595,000. D) 595,000 13. Cost of goods available for sale is computed by adding A) beginning inventory to net purchases B) net purchases and freight-in. C) purchases to beginning inventory D) beginning inventory to the cost of goods purchased. 14. Color Company recorded the following data: Date Units Unit Cost 1/1 Inventory 600 $2.00 1/8 Purchased 900 2.20 1,200 units were sold in January. The weighted average unit cost of the inventory at Janus A) $2,00. B) $2.10, C) $2.12. D) $2.20. 15. The respective normal account balances of Sales, Sales Returns and Allowances, and Sa are A) credit, credit, credit. B) credit, debit, credit. C) debit, credit, debit. D) credit Version 2 Page 2

Answer 1

9.
Gross Profit = Sales - Cost of Goods Sold
= 39000 - 24000 = $15000

Answer is B. $15000

10.
Answer is C.
2% discount is given if payment is made within 10 days.

11.
Ending Inventory = $270000 +52000 = $322000
Answer is b. $322000

12.
Net Income = $95000-47000-16000-5000 = $27000
Answer is A. $27000

13. Answer is D. Beginning inventory to cost of goods purchased

Cost of goods available for sale = beginning inventory + purchases

14.
Average cost per unit = (600x2+900x2.20) / (600+900) = $2.12
Answer is C. $2.12

15.
Answer is D. credit, debit, debit