15. Which of the following is generally found in the balance sheet of a manufacturing company? A. Finished goods. B. Work in process. C. Raw materials D. All three accounts are found in a manufacturer's balance sheet 16. Schnell Company purchases inventory for $100,000 on account. Shipping terms are FOB destination; Schnell pays shipping cost of $5000. Prior to paying for the purchase, Schnell discovers that some of the inventory was damaged and receives an allowance of $7000. Net purchases are: A. $100,000 B. $107,000 C. $98,000 D. $105,000 17. At the end of the year, Marline Corporation determines that its ending inventory ahs a cost of $2000 and a market value of $1900. What would the effect(s) of the adjustment to write-down inventory to market value? A. Increase to net income. B. No effect on net income and ending inventory C. Increase in cost of ending inventory D. Decrease in net income 18. Weichtel Company's beginning inventory was $20,000. During the year, Weichtel purchases inventory costing $100,000. Based on a physical count at the end of the year, Weichtel determines that the ending inventory is $28,000. How much was cost of goods sold for the year? A. $148,000 B. $108,000 C. $92,000 D. $100,000 19. Snow company's net sales revenue is $200,000, its cost of goods sold is $110,000 and its operating income is $20,000. How much are Snow Company's operating expenses? A. $90,000 B. $70,000 C. $20,000 D. $50,000 20. Winner Company purchases 100 units of inventory from Neue Company for $1000 on account. To encourage early payment, Neue Company offers the terms 2/10, n/30, If Winner pays nine days after the purchase, the cost of its purchase will be: A. $1020 B. $1000 C. $980 D. $1080 21. For a manufacturing company, the cost of items not yet complete at the end of the period are shown in the A. Work in process account B. Cost of goods sold account C. Finished goods account D. Raw materials account 22. Suppose that Witchel Company's ending inventory is understated by $500 at the end of the year. If the error is not discovered, the company's gross profit for the year will be A. Overstated B. The effect of the error will depend on the sales price of the inventory C. Stated correctly D. Understated 23. Which cost flow assumption generally results in the lowest reported amount of net income in periods of rising inventory costs? A. Weighted-Average B. Income will be the same under each assumption C. LIFO D. FIFO