Need help and explanation please!!
7. Assume that gross profit me that gross profit averages 40% for RAMCO. If sales are $1,600,000 and sales returns es returns are $100.000, beginning inventory is $200,000, and purchases are $1,000,000 What is RAMCO's estimated Cost of Goods Sold? a) $600,000 Salom sl.6 b) $640,000 c) $300.000 d) $960,000 e) $900,000 . 8. STEPHCO uses a periodic FIFO inventory system to account for its merchandise. Beginning inventory and transactions are as follows: January 1 January 12 January 19 January 20 January 27 Beginning balance of: 18 units at $13 Purchased 30 units at $14. Sold 24 units at $30 price. Purchased 24 units at $17. Sold 27 units at $30. What is the total cost of goods sold for January? a) Correct answer not shown b) $705 c) $1.062 $786 $276 9. A company uses a perpetual inventory system to account for its merchandise. Beginning inventory and transactions are as follows: January 1 January 12 January 19 January 20 January 27 Beginning balance of: 18 units at $13 Purchased 30 units at $14. Sold 24 units at $30 price. Purchased 24 units at $17. Sold 27 units at $30. If the ending inventory is reported at $276, what inventory method was used? a) LIFO b) FIFO c) Weighted Average method. d) Specific Identification Method e) Retail inventory method. 10. The advantage of LIFO is that it a) gives more accurate CGS than other methods of maintaining inventory. b) costs less to implement than FIFO. c) is easier to compute than FIFO. d) assigns the most recent costs to cost of goods sold and better matches current costs with revenues on the income statement e) None of the above. 11. Merchandise inventory is reported in the a) long-term assets section of the balance sheet. b) liabilities section of the balance sheet. c) current assets section of the balance sheet. d) equity section of the balance sheet. e) None of the above. 12. Assume that gross profit averages 35% for BITCO. If net sales are $1,500,000, beginning inventory is $200,000, and purchases are $1,000,000 What is BITCO's estimated ending inventory? a) $175.000 b) $225.000 c) $200,000 d) $250.000 e) $275,000 13. In the perpetual inventory system, purchases discounts are recorded by the buyer in the a) Merchandise Inventory account b) Purchases Discount account c) Sales Discount account d) Merchandise Discounts account e) None of the above. 14. Use the information provided to compute the ending inventory using the retail method. Sales $800,000: Goods available for sale at Cost $500,000 and at retail $1,000,000 a) $300,000 b) $200,000 c) $100.000 d) $400.000 e) None of the above. 15. Compute the Lower of Cost or Market (LCM) for R.A.Mona's Pet Shop Use the most conservative method of LCM. Mona's Pet Store Per Unit Total Total Inventory Items Units Cost Market Cost Market Puppies 11 $50 $100 Turtles 12 - 20 Fish Parrots Cats a) b) $2.430 $4,250 $2,000 $2,200 None of the above
