Inventory is increased as purchased, and reduced as sold Company made gross sales of $400,000 with terms On March 1st, Kellogg’s 2/10,n30. The customer later returned goods worth $20,000 because of defect on March 3rd. Calculate the net sales of company assuming the customer Kellogg’s rendered full payment on March 9th in the same year. $380,000 $360,000 $372,000 $372,400 Net sales = Gross sales sales return & allowance sales discounts – – = 400,000 20,000 [((400,000-20,000) X 2%) – – = 372,400 Which of the following parties would have a raw materials inventory, inventory and finished goods inventory? A retailer A manufacturer A distributor None of the above Under which of the following inventory methods, cost of goods sold would generally be the highest? FIFO LIFO Weighted-average method Specific identification method Answer questions 10, 11 and 12 based on the following information : September 1 Inventory balance on hand is $5,000 (500 units of inventory) – 6 Purchased 200 units @ $10.50 each – 7 Sold 500 units @ $15.00 each – 8 Purchased 200 units @ $11 each – 19 Sold 300 units @ $15.00 each – Assuming the above company uses the FIFO inventory method, what would the cost of goods sold be? $8,000 $8,050 $8,200 $9,600 [(500 units X $10) + (200units X $10.50) + (100units X $11)]
Inventory is increased as purchased, and reduced as sold On March 1st, Kellogg’s Company made gross sales of $400,000 with terms 2/10,n30. The customer later returned goods worth $20,000 because of defect on March 3rd. Calculate the net sales of Kellogg’s company assuming the customer rendered full payment on March 9th in the same year. $380,000 $360,000 $372,000 $372,400 Net sales = Gross sales – sales return & allowance – sales discounts = 400,000 – 20,000 – [((400,000-20,000) X 2%) = 372,400 Which of the following parties would have a raw materials inventory, inventory and finished goods inventory? A retailer A manufacturer A distributor None of the above Under which of the following inventory methods, cost of goods sold would generally be the highest? FIFO LIFO Weighted-average method Specific identification method Answer questions 10, 11 and 12 based on the following information : September 1 – Inventory balance on hand is $5,000 (500 units of inventory) 6 – Purchased 200 units @ $10.50 each 7 – Sold 500 units @ $15.00 each 8 – Purchased 200 units @ $11 each 19 – Sold 300 units @ $15.00 each Assuming the above company uses the FIFO inventory method, what would the cost of goods sold be? $8,000 $8,050 $8,200 $9,600 [(500 units X $10) + (200units X $10.50) + (100units X $11)]
ACCT_284__AB__Clem_euroy_acct_284_exam_review_answers.docx