A few accounting problems
17. Which of the following should not be included in the count of ending merchandise inventory?
A) Goods in transit to which a company has title
B) Damaged goods to be sold at a reduced price
C) Goods sold but not yet delivered
D) Goods in warehouses
18. Use the following inventory information for the month of April to answer the question(s) below.
Apr. 1 Beginning Inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units
Reference: Ref 10-7
Assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the average-cost method?
A) $3,666
B) $3,712
C) $7,734
D) $3,208
19. Use the following inventory information for the month of April to answer the question(s) below.
Apr. 1 Beginning Inventory 10 units @ $120
5 Purchase 60 units @ $112
14 Sale 40 units
21 Purchase 30 units @ $116
30 Sale 28 units
Reference: Ref 10-7
Assuming that a perpetual inventory system is used, what is ending inventory on a FIFO basis?
A) $7,696
B) $3,704
C) $3,664
D) More information is needed.
20. Apr. 1 Inventory 200 units @ $6.00
6 Purchase 300 units @ $6.60
13 Purchase 100 units @ $7.20
20 Purchase 200 units @ $7.80
25 Purchase 40 units @ $8.40
Sale 620 units
A perpetual inventory system is used.
Reference: Ref 10-4
Using LIFO, cost of goods sold is
A) $4,464.
B) $4,056.
C) $1,740.
D) $1,332.
21. Account Titles Account Balances
Sales Discounts 14
Withdrawals 89
Rent Earned 42
Equipment 516
Cost of Goods Sold 112
Accounts Payable??
Inventory 315
Delivery Expense (freight-out) 25
Capital 455
Sales 500
Salaries Expense 201
Accumulated depreciation-equipment 144
Cash 95
Sales returns & allowances 10
Supplies expense 31
Unearned Fees 112
Depreciation expense 23
After preparing a Trial Balance, calculate the Accounts Payable balance. Show your answer with a dollar sign and comma, if applicable. Do not use cents.
22. Account Titles Account Balances
Sales Discounts 14
Withdrawals 89
Rent Earned 42
Equipment 516
Cost of Goods Sold 112
Accounts Payable??
Inventory 315
Delivery Expense (freight-out) 25
Capital 455
Sales 500
Salaries Expense 201
Accumulated depreciation-equipment 144
Cash 95
Sales returns & allowances 10
Supplies expense 31
Unearned Fees 112
Depreciation expense 23
Calculate Gross Profit. Show your answers with a dollar sign and comma, if applicable. Do not use cents.
23. Account Titles Account Balances
Sales Discounts 14
Withdrawals 89
Rent Earned 42
Equipment 516
Cost of Goods Sold 112
Accounts Payable??
Inventory 315
Delivery Expense (freight-out) 25
Capital 455
Sales 500
Salaries Expense 201
Accumulated depreciation-equipment 144
Cash 95
Sales returns & allowances 10
Supplies expense 31
Unearned Fees 112
Depreciation expense 23
Calculate Net Income or Net Loss. Show your answer with a dollar sign and comma, if applicable. Do not use cents. If a Net Loss, show answer as $(XXX).
