Question 21 Cost of goods sold is often the largest expense on a merchandising company income statement. A True B False
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Question 21
Cost of goods sold is often the largest expense on a merchandising company income statement.
A True
B False
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- Quèstion 14 Selling expenses DOES NOT include: OA. Making sales OB. Accounting and Human Resources expense OC. Delivering goods to customers OD. Advertising expense Quèstion 16 Net Sales are calculated using: OA. Gross sales, sales returns & allowances, sales discount OB. Gross sales, cost of good available for sale, cost of goods sold OC. Gross sales, cost of goods sold, sales expenses OD. Gross sales, cost of sales, purchasesFor a manufacturer, what is the description of the account that is comparable to a merchandising businesss cost of merchandise sold?For a manufacturer, what is the description of the account that is comparable to a merchandising businesss cost of merchandise sold?
- QUESTION 3 Which of the following financial statement line items would be found on a manufacturer's financial statement but not on a merchandiser or service company's? (Select all that apply.) O Cost of Goods Sold O Finished Goods Inventory O Raw Materials Inventory Work-in-process InventoryQUESTION 1 A significant amount of accounting information is dedicated to planning and contraling the use of different categories of inventory and their attributable costs. Discuss, with examples, the five categories of costs that are associated with merchandise for resale and materials used for production. QUESTION 2 Cost-volume-profit (CVP) analysis is used to seek answers to questions such as: "What will happen to the profit it the firm increases its selling price by 15%?" Discuss the following under CVP analysis (present graphical representations where applicable): 1 The break-even graph il. The contribution graph i. The profit graphQuestion 7 The balance sheet of a manufacturing company will have multiple inventory accounts A. True B. False
- QUESTION 9 Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order quantity mathematically determines the minimum total inventory cost O B. The EOQ is directly proportional to the sales per period OC. The optìmal order size is determined by the EOQ model O D. The EOQ ignores inventory reorder costs and inventory carrying costsParagraph 151 Styles Assume an outlet of The Runner's Store has the following data: Date Item Quantity Unit Costs Sale Price Aug 1 Beginning balance 40 $40 Sale 16 $70 8 Purchase 80 41 11 Sale 34 70 19 Sale 72 24 Sale 30 72 30 Purchase 18 42 Requirements: a) Calculate the Cost of Goods Sold and Ending Inventory using FIFO method. b) Calculate the Cost of Goods Sold and Ending Inventory using Weighted Average method. c) Calculate the gross profit under FIFO and Weighted Average method. d) Prepare the journal entries for August 3 and August 8 based on FIFO method. a) FIFO Opening and Purchases Cost of Goods Sold Balance Date Unit Unit Amount Unit Unit Amount Unit Unit Amount Cost Cost Cost TotalQuestion 9 of 40 A(n)_ is a refund of a portion of, but not all of, the sales price of an item. A. sales allowance B. uncollectable account C. sales return D. sales order SUBMIT
- A single-step income statement for a merchandising firm: Question 7 options: A) Shows a different net income amount than a multiple-step income statement B) May not be used because it is an unacceptable reporting format C) Does not show a gross profit on sales amount D) None of the above14-What is the expansion of LIFO in the context of valuing Merchandise Inventory of a Merchandise business? a. Fast In Last Out b. First In Last Out c. Last In Fast Out d. Last In First OutEX 6-9 Weighted average cost flow method under perpetual inventory system The following units of a particular item were available for sale during the calendar vear: OBJ. 3 Jan. Inventory 4,000 units at $20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at S24 Sept. Sale 4,500 units Nov. 15 Purchase 1,000 units at $25
