1.The following information is available from Preston Company's 2002 accounting records:

Purchases.....................................................................................$530,000

Purchase discounts......................................................................10,000

Beginning inventory......................................................................160,000

Ending inventory...........................................................................215,000

Freight-out....................................................................................40,000

Preston's 2002 cost of goods sold is

a. 465,000.

b. 475,000.

c. 505,000.

d. 585,000.

2.Following are the account balances from Fulton Company's income statement:

Inventory, January 1, 2002 ............................P30,000

Purchases .............................................40,000

Purchase Returns and Allowances .......................5,000

Purchase Discounts ....................................4,000

Freight-In ............................................5,000

Inventory, December 31, 2002 ..........................15,000

Freight-Out ...........................................6,000

Given this information, the cost of goods sold during 2002 is

a. 51,000.

b. 46,000.

c. 56,000.

d. 66,000.

3.Following are the account balances from Jackson Company's income statement:

Inventory, January 1, 2005 ............................$35,000

Purchases .............................................35,000

Purchase Returns and Allowances .......................2,000

Purchase Discounts ....................................4,000

Freight-In ............................................5,000

Inventory, December 31, 2005 ..........................10,000

Freight-Out ...........................................6,000

Given this information, the cost of merchandise available for sale during 2005 is

a.$65,000.

b.$59,000.

c.$69,000.

d.$61,000.

From the following information, determine the amount for the next two question.

Beginning Inventory ...................................$20,000

Purchases .............................................41,000

Purchase Returns and Allowances .......................3,000

Purchase Discounts ....................................4,000

Freight-In ............................................?

Cost of Goods Available for Sale ......................55,000

Ending Inventory ......................................?

Cost of Goods Sold ....................................22,000

4.How much is the freight- in?

a.3,000 b. 4,000c. 2,000d. 1,000

5.How much is the ending inventory?

a.23,000b. 32,000c. 33,000d. 22,000

Miller Inc. is a wholesaler of office supplies. The activity for Model III calculators during August is shown below:

Balance/

DateTransactionUnitsCost

August 1Inventory2,000$36.00

7Purchase3,00037.20

12Sales3,600

21Purchase4,80038.00

22 Sales3,800

29 Purchase1,60038.60

6.If Miller Inc. uses a perpetualinventorysystem, calculate the ending inventory of Model III calculators at August 31 assuming theLIFOmethod

a.150,080b. 150,160c. 152,288d. 152,960

7.If Miller Inc. uses a perpetualinventorysystem, calculate the ending inventory of Model III calculators at August 31 assuming theFIFOmethod

a.150,080b. 150,160c. 152,232d. 152,960

Stephens Inc. is a wholesaler of photography equipment. The activity for the VTC cameras during July is shown below:

Balance/

DateTransactionUnitsCost

July1 Inventory2,000$36.00

7Purchase3,00037.00

12Sales3,600

21Purchase5,00037.88

22Sales3,800

29Purchase1,60038.11

8.If stephens Inc. uses the average cost method to account for inventory, the ending inventory of VTC cameras at July 31 is reported as

a.153,400b. 156,912c. 158,736d. 159,464

Campbell's Clothing Store sells jeans. During January 2002, its inventoryrecords for one brand of designer jeans were as follows:

Beginning Inventory....................................10 pairs@ $ 20 =$ 200

January 6 Purchase...................................4 pairs@25 =100

January 10 Sale..........................................5 pairs

January 15 Purchase.................................7 pairs@30 =210

January 20 Sale..........................................10 pairs

January 25 Purchase.................................4 pairs@30 =120

9.How much is the cost of goods sold using periodic FIFO?

a.330b. 300c. 430d. 250

10.How much is the cost of goods sold using the average cost method?

a.378b. 358c. 265d. 236

11.With LIFO, cost of goods sold is 195,000 and ending inventory is 45,000. If FIFO ending inventory is 65,000 how much is FIFO cost of goods sold?

a.215,000b. 195,000c. 175,000d. 65,000