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.

 

 

 

 

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