7. Coleman Company has provided the following information: beginning inventory,
ID: 2501255 • Letter: 7
Question
7. Coleman Company has provided the following information: beginning inventory, $100,000; cost of goods sold, $450,000; and ending inventory, $80,000. How much were Coleman's inventory purchases?
A. $450,000.
B. $410,000.
C. $430,000.
D. $420,000.
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8.
Which of the following statements is incorrect?
A. Ending inventory exceeds beginning inventory when purchases are greater than cost of goods sold.
B. Cost of goods sold exceeds purchases when ending inventory is less than beginning inventory.
C. Cost of goods available for sale will always be equal to or greater than cost of goods sold.
D. Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold.
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9.
A company provided the following data: sales, $500,000; beginning inventory, $40,000; ending inventory, $45,000; and gross profit, $150,000. What was the amount of inventory purchased during the year?
A. $385,000.
B. $355,000.
C. $345,000.
D. $145,000.
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10.
Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers:
During the year, Lauer sold 750 laptop computers.
What was cost of goods sold using the FIFO cost flow assumption?
A. $725,000.
B. $740,000.
C. $735,000.
D. $720,000.
11.
During the year, Lauer sold 750 laptop computers.
What was ending inventory using the LIFO cost flow assumption?
A. $40,000.
B. $45,000.
C. $55,000.
D. $60,000.
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12. Under the FIFO cost flow assumption during a period of rising costs, which of the following is false?
A. Income tax expense will be higher under FIFO than under LIFO.
B. Net income will be higher under FIFO than under LIFO.
C. Ending inventory will be lower under FIFO than under LIFO.
D. Cost of goods sold will be lower under FIFO than under LIFO.
DATE TRANSACTION NUMBER OF UNITS COST PER UNIT 1/1/2015 Beginning Inventory 100 $800 5/5/2015 Purchase 200 $900 8/10/2015 Purchase 300 $1,000 10/15/2015 Purchase 200 $1,050Explanation / Answer
7.
Therefore, purchases are $430,000.
Note: Please post one question, if they are miltiple choice.
Particulars Amount ($) Cost of goods sold 450,000 Add: Ending inventory 80,000 Less: Beginning inventory 100,000 Purchases 430,000Related Questions
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