# A company purchased 100 units for \$20 each on January 31. It purchased 100 units for \$30 on February

A company purchased 100 units for \$20 each on January 31. It purchased 100 units for \$30 on February 28. It sold 150 units for \$45 each from March 1 through December 31. If the company uses the Last-In, First-Out inventory costing method, what is the amount of Cost of goods sold on the December 31 income statement? (Points : 1) \$4,000 \$3,750 \$6,750 \$3,500 None of these is correct 2. A company purchased 100 units for \$20 each on January 31. It purchased 100 units for \$30 on February 28. It sold 150 units for \$45 each from March 1 through December 31. If the company uses the First-In, First-Out inventory costing method, what is the amount of Cost of goods sold on the December 31 income statement? (Points : 1) \$6,750 \$4,000 \$3,500 \$3,750 None of these is correct 3. When a company uses the perpetual inventory method, the inventory account should stay current at all times. (Points : 1) True False 4. The following data is available: Net sales, first month \$13,000 Normal gross profit 45% Beginning inventory 8,000 Net purchases 7,000 Using the gross profit method, the amount of Gross profit would be: (Points : 1) \$15,000. \$ 6,750. \$ 5,850. \$ 3,600. None of these is correct 5. A sales return is recorded with a credit to Inventory. (Points : 1) True False 6. Samson Company had the following balances and transactions during 2013. Beginning inventory 10 units at \$70 March 10 Sold 8 units June 10 Purchased 20 units at \$80 October 30 S15 units What would the company’s Inventory amount be on the December 31, 2013 balance sheet if the perpetual Last-In, First-Out costing method is used? (Answers are rounded to the nearest dollar.) (Points : 1) \$490 \$554 \$560 \$540 None of these is correct 7. Under Last-In, First-Out, the Cost of goods sold is based on the oldest purchases. (Points : 1) True False 8. A business has Beginning capital of \$100,000. During the year, sales revenues were \$20,000, Sales returns and allowances were \$300, Sales discounts were \$700, Cost of goods sold were \$12,000, and all other expenses totaled \$4,500. \$1,000 of withdrawals were taken. The ending balance in Capital, after closing entries, would be: (Points : 1) \$119,000. \$ 98,500. \$101,500. \$ 1,500. None of these is correct 9. Revenue is \$400,000 and Cost of goods sold is \$320,000. How much is the gross profit percent? (Points : 1) 75% 20% 60% 80% None of these is correct 10. In the credit terms of 2/10, n/30, what does the 2/10 mean? (Points : 1) The invoice must be paid in 2 days or a 10% late charge will be assessed. The invoice was printed 2 days after the sale and is due in 10 days. The goods shipped took 2 days to arrive and the charge was \$10.00. The purchaser may take a 2% dicount if the invoice is paid in 10 days.