Question :
108.Which of the following not considered in computing net cost : 1244373
108.Which of the following is not considered in computing net cost of purchases?
a.
Freight paid on goods shipped to customers
b.
Purchases returns and allowances
c.
Freight paid on purchased goods
d.
Purchases
109.Which of the following is necessary for computing cost of goods sold but not necessary for computing the cost of goods available for sale?
a.
Freight-in
b.
Beginning merchandise inventory
c.
Purchases
d.
Ending merchandise inventory
110.Use this information to answer the following question.
Account Name
Debit
Credit
Sales
369,000
Sales Returns and Allowances
10,000
Purchases
68,000
Purchases Returns and Allowances
8,000
Freight-In
12,000
Selling Expenses
30,000
General and Administrative Expenses
110,000
In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
a.
$369,000.
b.
$359,000.
c.
$339,000.
d.
$279,000.
111.Use this information to answer the following question.
Account Name
Debit
Credit
Sales
300,000
Sales Returns and Allowances
10,000
Purchases
70,000
Purchases Returns and Allowances
8,000
Freight-In
12,000
Selling Expenses
30,000
General and Administrative Expenses
110,000
In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net cost of purchases for the period were
a.
$94,000.
b.
$74,000.
c.
$62,000.
d.
$86,000.
112.Use this information to answer the following question.
Account Name
Debit
Credit
Sales
300,000
Sales Returns and Allowances
10,000
Purchases
74,000
Purchases Returns and Allowances
8,000
Freight-In
12,000
Selling Expenses
30,000
General and Administrative Expenses
110,000
In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Cost of goods sold for the period was
a.
$74,000.
b.
$86,000.
c.
$70,000.
d.
$100,000.
113.Use this information to answer the following question.
Account Name
Debit
Credit
Sales
300,000
Sales Returns and Allowances
10,000
Purchases
68,000
Purchases Returns and Allowances
8,000
Freight-In
12,000
Selling Expenses
30,000
General and Administrative Expenses
110,000
In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Income before income taxes for the period was
a.
$210,000.
b.
$70,000.
c.
$180,000.
d.
$100,000.
114.Use this information to answer the following question.
In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
If beginning and ending merchandise inventories were ignored in computing net income, then net income would be
a.
understated by $8,000.
b.
overstated by $8,000.
c.
understated by $14,000.
d.
understated by $22,000.
115.Use this information to answer the following question.
The selected accounts and balances for Keystone Market appear as follows:
Advertising Expense
$ 14,000
Common Stock
100,000
Dividends
21,000
Delivery Expense
10,000
Freight-In
7,000
Interest Income
24,000
Merchandise Inventory (Jan. 1)
70,000
Merchandise Inventory (Dec. 31)
56,000
Purchases
60,000
Purchases Returns and Allowances
4,000
Rent Expense
9,000
Retained Earnings
40,000
Sales
150,000
Sales Returns and Allowances
19,000
Wages Expense
32,000
The amount of net sales on the income statement would be
a.
$131,000.
b.
$144,000.
c.
$169,000.
d.
$137,000.
116.Use this information to answer the following question.
The selected accounts and balances for Keystone Market appear as follows:
Advertising Expense
$ 14,000
Common Stock
100,000
Dividends
21,000
Delivery Expense
10,000
Freight-In
7,000
Interest Income
24,000
Merchandise Inventory (Jan. 1)
73,000
Merchandise Inventory (Dec. 31)
56,000
Purchases
60,000
Purchases Returns and Allowances
4,000
Rent Expense
9,000
Retained Earnings
40,000
Sales
150,000
Sales Returns and Allowances
19,000
Wages Expense
32,000
The cost of goods available for sale would appear on the income statement as
a.
$129,000.
b.
$136,000.
c.
$66,000.
d.
$76,000.
117.Use this information to answer the following question.
The selected accounts and balances for Keystone Market appear as follows:
Advertising Expense
$ 14,000
Common Stock
100,000
Dividends
21,000
Delivery Expense
10,000
Freight-In
7,000
Interest Income
24,000
Merchandise Inventory (Jan. 1)
70,000
Merchandise Inventory (Dec. 31)
56,000
Purchases
60,000
Purchases Returns and Allowances
4,000
Rent Expense
9,000
Retained Earnings
40,000
Sales
143,000
Sales Returns and Allowances
19,000
Wages Expense
32,000
Gross margin from sales would be
a.
$47,000.
b.
$60,000.
c.
$66,000.
d.
$54,000.
