WITH CLEAR EXPLANATION PLEASE.

1. The following information is available for Kerr Company for 2004:

Freight-in 60,000

Purchase returns 150,000

Selling expenses 300,000

Ending inventory 520,000

The cost of goods sold is equal to 300% of selling expenses. What is the cost of goods available for

sale?

a. 900,000. c. 1,330,000.

b. 1,480,000. d. 1,420,000.

Use the following information for the next two questions:

Queen Co. records purchases at net amounts. On May 5 Queen purchased merchandise on account,

32,000, terms 2/10, n/30. Queen returned 2,000 of the May 5 purchase and received credit on

account. At May 31 the balance had not been paid.

2. The amount to be recorded as a purchase return is

a. 1,800. b. 2,040. c. 2,000. d. 1,960.

3. By how much should the account payable be adjusted on May 31?

a. 0. b. 680. c. 640. d. 600.

Use the following information for the next two questions:

The following information was available from the inventory records of Moen Company for January:

Units Unit Cost Total Cost

Balance at January 1 3,000 9.77 29,310

Purchases:

January 6 2,000 10.30 20,600

January 26 2,700 10.71 28,917

Sales:

January 7 (2,500)

January 31 (3,200)

Balance at January 31 2,000

4. Assuming that Moen does not maintain perpetual inventory records, what should be the

inventory at January 31, using the weighted-average inventory method, rounded to the nearest

peso?

a. 21,010. b. 20,474. c. 20,520. d. 20,720.

5. Assuming that Moen maintains perpetual inventory records, what should be the inventory at

January 31, using the moving-average inventory method, rounded to the nearest peso?

a. 21,010. b. 20,474. c. 20,520. d. 20,720.

6. James Co. has the following data related to an item of inventory:

Inventory, March 1 200 units @ 4.20

Purchase, March 7 700 units @ 4.40

Purchase, March 16 140 units @ 4.50

Inventory, March 31 300 units

The value assigned to cost of goods sold if James uses FIFO is

a. 1,334. b. 1,280. c. 3,270. d. 3,216.

Use the following information for the next two questions:

Transactions for the month of June were:

Purchases Sales

June 1 (balance) 1,200 @ 3.20 June 2 900 @ 5.50

3 3,300 @ 3.10 6 2,400 @ 5.50

7 1,800 @ 3.30 9 1,500 @ 5.50

15 2,700 @ 3.40 10 600 @ 6.00

22 750 @ 3.50 18 2,100 @ 6.00

25 450 @ 6.00

7. Assuming that perpetual inventory records are kept in pesos, the ending inventory on a FIFO

basis is

a. 5,700. b. 5,760. c. 6,195. d. 6,300.

8. Assuming that perpetual inventory records are kept in units only, the ending inventory on an

average-cost basis, rounded to the nearest dollar, is

a. 5,940. b. 5,868. c. 5,910. d. 5,985.

9. The following information applied to Flynn, Inc. for 2004:

Merchandise purchased for resale 400,000

Freight-in 16,000

Freight-out 10,000

Purchase returns 4,000

Flynn's 2004 inventoriable cost was

a. 400,000. b. 406,000. c. 412,000. d. 422,000.

10. Tysen Retailers purchased merchandise with a list price of 90,000, subject to trade discounts of

20% and 10%, with no cash discounts allowable. Tysen should record the cost of this

merchandise as

a. 63,000. b. 64,800. c. 70,200. d. 90,000