Question

7. The following data applies to a particular item of merchandise: On hand at start of period 1 purchase 2nd purchase 3d purchase Number of units available for sale On hand at end of period Number of units sold during period 300 500 700 600 2,100 500 1600 $5.10 5.20 5.30 5.50 Of the 1,600 chas during the period, 300 were from the beginning inventory: 500 from the first tho te econd purchase; and 200 from the last purchase. Using the last-in, first-out cos S2.738hd, the value of the inventory on hand at the end of the period would be $2,730 b. $2,750. c. $2,570. d. $8,570. Refer to the following data: a. 8. Net sales, first month $13,000 45% $8,000 $7,000 Normal gross profit as a percentage of sales Inventory, start of period Net purchases, first month Using the gross profit method of inventory estimation, the amount of normal gross profit would be a. $5,850 b. $3,600. c. $6,750. d. $15,000. A beginning inventory of $75,000 is removed from the merchandise inventory account by a. debiting $75,000 to Merchandise Inventory b. crediting $75,000 to Merchandise Inventory c. debiting $75,000 to Purchases. d. crediting $75,000 to Income Summary. 9. 10. Use the following information to prepare the cost of goods sold section of the income statement for Beth's Jewels Beginning merchandise inventory Ending merchandise inventory Purchases Purchases returns and allowances Purchases discounts Freight-in $41,000 34,000 52,000 4,700 1,300 900

Answer 1