BUS 201 Exam 3 Take home 1. Manufacturers usually classify inventory into how many categories? List each and explain, in your own words, what they are. 2 Manufactured inventory that has begun the production process but is not yet completed is _? Answer, list definition, and give an example. 3. What is the primary source of revenue for a wholesaler? (Use account name) Answer, list an example of a wholesaler, and an example of their revenue source. 4 Generally, the revenue account for a merchandising enterprise is called ? Answer, list an example of a merchandiser, and an example of their revenue source. 5 Which of the following would not be considered a merchandising operation? Explain your answer. a Service firm c Wholesaler b Retailer d Merchandising company 6 What are two categories of expenses in merchandising companies? Give definitions of each and an example of each expense category. 7 In the credit terms of 1/10,n/30 what does each number and letter represent? Answer. 8 Sales revenue less cost of goods sold is called Answer and list which finacial statement you'll find this on. 9 What type of account is Sales Returns and Allowances? Answer and explain what that means. 10 The journal entry to record a credit sale, ignoring cost of goods sold, for $450 on 1/15 is 11 List Five account cotcgories that normally have a debit balance? (Contra accounts will be inchuded) 12 Assets purchased for resale are recorded as what? Answer and list an example. 13. Multiple-step income statements show what steps? Answer with steps in order. 14. Winds Co. purchased merchandise inventory with an invoice price of $18,500 and credit terms of 2/10,n/30. What is the net cost of goods if Whispering Winds pays within the discount period? Show your calculations. 15 Automobile Audio has the following inventory data: Nov. 1 Inventory 26 units (i) 55.20 each 8 Purchase 103 units ( 55.55 each 17 Purchase 52 units ob 55.40 each 25 Purchase 77 units $55.70 each A physical count of merchandise inventory on November 30 reveals that there are 92 units on hand. What is the ending inventory amount using FIFO? Show your calculations. 16 On September 4, Roberta's Knickknacks buys merchandise on account from Dolan Company. The selling price of the goods is $900 and the cost of goods is $650. 1. Journalize the transactions on the books of Roberta's Knickknacks. * color code your accounts and add Increase or Derreace 2. Journalize the transactions on the books of Dolan Company. * color code your accounts and add increase or Nerreaco 17 Sanes revenue total to $10,000. Sales returns and allowances are $500 and sales discounts are $1,000. How much is net sales? Show your calculations. 18 Skysong, Inc. purchased merchandise inventory with an invoice price of $15,500 and credit terms of 3/9,n/30. What is the net cost of the goods if Skysong, Inc. pays within the discount period? Show your calculation. 19 Financial information is presented below: What is gross profit? Show your calculation. 20 FREE POINT I need some new music in my life. Who is your favorite music artist and your favorite song by them? 21 List an inventory account that manufacturers would NOT use. Explain why. For 22 - 25, list the missing item and give the definition. 22 Gross profit-Operating expenses = 23 Cost of goods sold + Gross profit = 24 Net sales - Cost of goods sold = 25 Sales Revenue Net Sales Carla Vista Co. shows the following for the month of May, in which 70 units were sold. Calculate the weighted-average unit cost. (Round answer to 2 decimal places, e. . . 5.13.) Show your work Weighted-average unit cost
