Question :
Washington Warehouse a small retail business that specializes in the : 1229732
Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV:
Jan. 5 Purchased 8 Flat TVs at a unit cost of $1,400
Jan. 18 Purchased 5 additional Flat TVs at $1,400 each
Feb. 12 Sold 9 Flat TVs to the Duke Hotel for $15,300
91. Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the purchase on January 18th would include which of the following?
A. A debit to the Purchases account for $7,000.
B. A debit to the Cost of Goods Sold for $7,000.
C. A credit to Inventory for $7,000.
D. A debit to Inventory for $7,000.
92. Refer to the information above. The gross profit on the Flat TVs as of February 12th is:
A. $11,200.
B. $2,700.
C. $4,100.
D. $15,300.
93. Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except:
A. A debit to the Cost of Goods Sold for $15,300.
B. A credit to Sales Revenue for $18,200.
C. A credit to Purchases for $15,300.
D. A credit to Inventory for $15,300.
94. Refer to the information above. Washington maintains a subsidiary ledger account for each type of TV carried in the store. An examination of the account for the Flat TV model at the end of February would show:
A. 4 units on hand with a total value of $1,400.
B. 4 units on hand with a total value of $5,600.
C. 13 units on hand with a total value of $18,200.
D. The amount that Washington owes to Bass.
95. Beacon Food Stores purchased canned goods at an invoice price of $4,000 and terms of 2/10, n/30. Half of the goods had been mislabeled and were returned immediately to the supplier. If Harvest Food pays the remaining amount of the invoice within the discount period, the amount paid should be:
A. $1,920.
B. $1,960.
C. $3,920.
D. $4,000.
96. Berg Tooling reports net sales of $325,000, gross profit of $175,000, and net income of $15,000. The company’s cost of goods sold is:
A. $135,000.
B. $150,000.
C. $140,000.
D. $125,000.
97. VanRoy Supplies reports net sales of $1,750,000, net income of $175,000, and gross profit of $300,000. The company’s cost of goods sold is:
A. $1,400,000.
B. $475,000.
C. $1,575,000.
D. $1,450,000.
World of Sound is a small retail business that specializes in the sale of top-of-the-line sound systems. This year, the store has begun to carry the Surround Sound manufactured by Carp Co. Thus far, World of Sound has recorded the following transactions involving the Surround Sound
May 5 Purchased 18 units at a unit cost of $2,400
May 18 Purchased 15 additional units at $2,550 each
June 12 Sold 19 units to the Davies Theater
98. If World of Sound uses a perpetual inventory system, the journal entry to record the purchase on May 18th would include which of the following?
A. A debit to the Purchases account for $38,250.
B. A debit to the Cost of Goods Sold for $38,250.
C. A credit to Inventory for $38,250.
D. A debit to Inventory for $38,250.
99. If World of Sound uses a perpetual inventory system, the journal entry to record the sale on February 12th would include which of the following?
A. A debit to the Cost of Goods Sold for $45,750.
B. A credit to the Cost of Goods Sold for $45,750.
C. A credit to Purchases for $45,750.
D. A debit to Inventory for $45,750
Bremmer uses a periodic inventory system and the following information is available:
100. What is the cost of goods sold?
A. $96,800.
B. $133,600.
C. $132,200.
D. $230,400.
101. What is the gross profit?
A. $96,800.
B. $133,600.
C. $132,200.
D. $230,400.
102. If Bounder Dog Supplies, Inc purchased inventory at $2,200 list price and the terms were 3/10 n/30, what would be the value associated with the inventory if payment was made within 10 days?
A. $2,268.
B. $2,334.
C. $2,200.
D. $2,134.
103. Pet Foods Plus purchased bagged dog food at an invoice price of $6,000 and terms of 2/10, n/30. Half of the bags had been damaged in shipment and delivery was refused. If Pet Foods Plus pays the remaining amount of the invoice within the discount period, the amount paid should be:
A. $2,940.
B. $3,000.
C. $5,880.
D. $6,000.
104. At the beginning of 2012, Wilson Stores has an inventory of $300,000. Because sales growth was strong during 2012, the owner wants to increase inventory on hand to $450,000 at December 31, 2012. If net sales for 2012 are expected to be $2,600,000, and the gross profit rate is expected to be 35%, compute the cost of the merchandise the owner should expect to purchase during 2012.
A. $750,000.
B. $1,240,000.
C. $1,690,000.
D. $1,840,000.
105. If cost of goods sold is $360,000 and the gross profit rate is 40%, what is the gross profit?
A. $240,000.
B. $360,000.
C. $600,000.
D. $900,000.
