Question :
71. RJ Corporation has provided the following information about one of : 1228534
71. RJ Corporation has provided the following information about one of their inventory items:
During the year, 3,000 units were sold.
What was ending inventory using the average cost flow assumption?
A. $640,000
B. $840,000
C. $770,000
D. $880,000
72. RJ Corporation has provided the following information about one of their inventory items:
During the year, 3,000 units were sold.
What was cost of goods sold using the average cost flow assumption?
A. $11,680,000
B. $11,590,000
C. $11,480,000
D. $11,550,000
73. RJ Corporation has provided the following information about one of their inventory items:
During the year, 3,000 units were sold.
What was cost of goods sold using the LIFO cost flow assumption?
A. $11,680,000
B. $11,590,000
C. $11,480,000
D. $11,550,000
74. RJ Corporation has provided the following information about one of their inventory items:
During the year, 3,000 units were sold.
What was cost of goods sold using the FIFO cost flow assumption?
A. $11,680,000
B. $11,590,000
C. $11,480,000
D. $11,550,000
75. On March 15, 2010, Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10, n/30. Ryan Company records its purchases using the gross amount. The periodic inventory system is used. Which of the following journal entries is correct when Ryan Company pays for these goods on March 30, 2010?
A. Accounts payable 9,800
B. Cash 9,800
C. Accounts payable 10,000
D. Cash 10,000
E. Accounts payable 10,000
F. Cash 9,800
G. Purchase discounts 200
H. Accounts payable 9,800
I. Purchase discounts 200
J. cash 10,000
76. On March 15, 2010, Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10, n/30. Ryan Company records its purchases using the gross amount. The periodic inventory system is used. Which of the following journal entries is correct when Ryan Company pays for these goods on March 20, 2010?
A. Accounts payable 9,800
B. Cash 9,800
C. Accounts payable 10,000
D. Cash 10,000
E. Accounts payable 10,000
F. Cash 9,800
G. Purchase discounts 200
H. Accounts payable 9,800
I. Purchase discounts 200
J. cash 10,000
77. Which of the following journal entries is not consistent with the use of a perpetual inventory system?
A. Inventory
B. Accounts payable
C. Cost of goods sold
D. Inventory
E. Purchases
F. Accounts payable
G. Accounts receivable
H. sales revenue
78. Which of the following journal entries is not consistent with the use of a periodic inventory system?
A. Purchases
B. Accounts payable
C. Inventory
D. Accounts payable
E. Accounts payable
F. Cash
G. Accounts receivable
H. Sales revenue
79. Which of the following statements is correct regarding either the perpetual or periodic inventory systems?
A. In a perpetual inventory system, the inventory account is not changed for each purchase during the accounting period.
B. In a perpetual inventory system, cost of goods sold is recorded at the time of each sale during the accounting period.
C. In a periodic inventory system, cost of goods sold is developed from a comparison of beginning inventory and ending inventory only.
D. In a periodic inventory system, the inventory account is increased for each purchase during the accounting period.
80. When a company uses the periodic inventory system, which of the following is true?
A. Purchases are recorded in the cost of goods sold account.
B. The inventory account is updated after each sale.
C. Cost of goods sold is computed at the end of the accounting period rather than at each sale date.
D. The inventory account is updated throughout the year as purchases are made.
