QUESTION 2

Inventory sold with terms FOB shipping point represents a situation in whcih the

a.

buyer agreed to bear the transportation cost and paid the carrier

b.

buyer agreed to bear the transportation cost, but the seller paid the carrier

c.

seller agreed to bear the transportation cost and paid the carrier

d.

seller agreed to bear the transportation cost, but the buyer paid the carrier

QUESTION 8

Judy Company had the following four tansactions during January 1997 Jan. 3 Purchased 200 hair dryers from Shick Corporation for $30 each, terms n/30 Jan. 5 Sold 50 hair dryers purchased on January 3 for $50 each, terms n/30 Jan. 15 Returned five of the hair dryers purchased on January 3 because they were defective Jan. 22 A customer returned two hair dryers purchased on January 5 because they were defective. Given this infornation, with the perpetual inventory method, the entry to record th JANUARY 5th transaction would include

	a.	a debit to cost of goods sold of $1,500
	b.	a debit to accounts receivable of $2,500
	c.	a credit to inventory of $1,500
	d.	all fo the above

5.5 points

QUESTION 9

Judy Company had the following four tansactions during January 1997 Jan. 3 Purchased 200 hair dryers from Shick Corporation for $30 each, terms n/30 Jan. 5 Sold 50 hair dryers purchased on January 3 for $50 each, terms n/30 Jan. 15 Returned five of the hair dryers purchased on January 3 because they were defective Jan. 22 A customer returned two hair dryers purchased on January 5 because they were defective. Given this information , with the perpetual incentory method , the entry to record the Januray 15 transaction would include a

	a.	debit to purchases of $150
	b.	credit to purchases of $150
	c.	credit to inventory of $150
	d.	credit to purchase returns and allowances of $150

5.5 points

QUESTION 10

If a firm's beginning inventory is $35,000 goods purchased during th period cost of $130,000, and the cost of goods sold if $150,000, what is the ending inventory?

	a.	$15,000
	b.	$25,000
	c.	$20,000
	d.	$45,000

5.5 points

QUESTION 11

With the perpetual inventory method, which of the following entries would be mad when inventory costing $3,600 is sold for $5,000?

	a.	inventory 5,000 accounts payable 5,000
	b.	cost of goods sold 3,600 inventory 3,600
	c.	purchases 5,000 accounts receivable 5,000
	d.	inventory 4,000 cost of good sold 3,000 accounts payable 2,000 purchases 5,000

5.5 points

QUESTION 12

If cost of goods sold is $12,000 and the ending inventory balance is $6,000

	a.	beginning inventory is $18,000
	b.	net income is $6,000
	c.	the cost of goods available for sale is $18,000
	d.	purchases are $6,000

5.5 points

QUESTION 13

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

5.5 points

QUESTION 14

The following information is available for Lyle corporation for the month of June beginning inventory 8units at $20 = $160 Purchased, june 3 5 units at $22 = $110 Purchased, June 5 7 units at $24 = $168 sold, June 9 9 units Purchased, June 15 8 units at $26 -= $208 sold, june 19 7 units Given this information, the perpetual LIFO ending inventory balance is

	a.	$252
	b.	$240
	c.	$288
	d.	$297

5.5 points

QUESTION 15

Jill's sporting goods had the following inventory records for one line of skis for the month of january: beginning inventory 70 pairs @ $100 per pai = $7,000 Sales (jan 1- jan 7) 50 pairs purchase (jan 8) 46 pairs @ $104 per pair = $4,784 sales (jan 9-jan 16) 49 pairs Purchase (jan 17) 62 pairs @ $110 per pair = $6,820 Sales (jan 18-jan 29) 56 pairs purchase (jan 30) 18 pairs @ $112 per pair = $2,016 assuming the perpetual FIFO inventory method is used, what is the cost of jill's ending inventory?

	a.	$4,100
	b.	$4,234
	c.	$4,376
	d.	$4,546

5.5 points

QUESTION 16

jill's sporting goods had the following inventory records for one line of skis for the month of january: beginning inventory 70 pairs @ $100 per pair = $7,000 Sales (jan 1- jan 7) 50 pairs purchase (jan 8) 46 pairs @ $104 per pair = $4,784 sales (jan 9-jan 16) 49 pairs Purchase (jan 17) 62 pairs @ $110 per pair = $6,820 Sales (jan 18-jan 29) 56 pairs purchase (jan 30) 18 pairs @ $112 per pair = $2,016 assuming the perpetual LIFO inventory method is used, what is the cost of jill's ending inventory?

	a.	$4,124
	b.	$4,268
	c.	$4,376
	d.	$4,546

5.5 points

QUESTION 17

jill's sporting goods had the following inventory records for one line of skis for the month of january: beginning inventory 70 pairs @ $100 per pair = $7,000 Sales (jan 1- jan 7) 50 pairs purchase (jan 8) 46 pairs @ $104 per pair = $4,784 sales (jan 9-jan 16) 49 pairs Purchase (jan 17) 62 pairs @ $110 per pair = $6,820 Sales (jan 18-jan 29) 56 pairs purchase (jan 30) 18 pairs @ $112 per pair = $2,016 assuming the perpetual LIFO inventory method is used, what is jill's cost of goods sold?

	a.	$15,986
	b.	$16,244
	c.	$16,328
	d.	$16,706

5.5 points

QUESTION 18

Morely clothing store sells jeans. During january 1997, its inventory records of 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 using this information, perpetual LIFO cost of goods sold is

	a.	$390
	b.	$290
	c.	$235
	d.	$330