11) Beginning inventory plus net purchases and plus freight in equals:
A) net purchases.
B) cost of goods available for sale.
C) cost of goods sold.
D) gross purchases.
12) Cost of goods sold plus ending inventory equals:
A) net purchases.
B) cost of goods available for sale.
C) gross margin.
D) gross profit.
Table 5-4
The following data is for the Atlantis Merchandising, which uses a periodic inventory system:
Sales revenue
$600,000
Interest revenue
12,000
Freight in
42,000
Beginning inventory
77,000
Purchase discounts
19,000
Sales returns and allowances
33,000
Operating expenses
77,000
Interest expense
9,000
Ending inventory
81,000
Purchases
415,000
Sales discounts
35,000
Omar Atlantis, Withdrawals
71,000
Purchase returns and allowances
39,000
13) Refer to Table 5-4. Net purchases for Atlantis Merchandising are:
A) $415,000.
B) $357,000.
C) $396,000.
D) $376,000.
14) Refer to Table 5-4. The total cost of goods available for sale for the Atlantis Merchandising is:
A) $434,000.
B) $408,000.
C) $476,000.
D) $441,000.
15) Refer to Table 5-4. The cost of goods sold for Atlantis Merchandising is:
A) $524,000.
B) $489,000.
C) $557,000.
D) $395,000.
Table 5-5
The following items were taken from the December 31, 2013 records of Speedy Boat Company, which uses a periodic inventory system:
Salary payable
$1,100
Sales revenue
480,000
Interest revenue
3,000
Freight in
20,000
Beginning inventory
35,000
Sales discounts
18,000
Purchases of inventory
240,000
Purchase returns and allowances
35,000
Purchase discounts
10,000
Sales returns and allowances
35,000
Ending inventory
80,000
Operating expenses
85,000
Interest expense
7,000
Owner withdrawals
12,000
16) Refer to Table 5-5. The net purchases for Speedy Boat Company are:
A) $230,000.
B) $195,000.
C) $240,000.
D) $205,000.
17) Refer to Table 5-5. Cost of goods available for sale for Speedy Boat Company is:
A) $155,000.
B) $225,000.
C) $230,000.
D) $250,000.
18) Refer to Table 5-5. Cost of goods sold for Speedy Boat Company is:
A) $170,000.
B) $180,000.
C) $330,000.
D) $220,000.
19) In a periodic system, inventory balances and the cost of goods sold for the current period are determined:
A) at the time of sale.
B) on a frequent basis.
C) on the first day of each year.
D) when a physical inventory count is taken.
20) The following refers to periodic inventory:
Net sales
$198,000
Purchases
92,000
Purchases returns and allowances
1,800
Purchases discounts
1,250
Freight in
1,590
Beginning merchandise inventory
63,000
Ending merchandise inventory
37,000
Compute cost of goods sold.
A) $116,540
B) $81,460
C) $114,950
D) $53,540
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