Question 1

Berring Sales uses LIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record through the January 14 sale,and calculate the Cost of goods sold for the January 14 sale.(Please round to the nearest whole dollar.)

Accepted Answer

C) Calculations: 10 × $4.25 = $43

Question 2

Berring Sales uses FIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record through the January 14 sale and calculate the inventory balance after the sale on January 14.(Please round to the nearest whole dollar.)

Accepted Answer

A) Calculations: 15 × $4 + 40 × $4.25 = $230

Question 3

Berring Sales uses FIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record and calculate the Cost of goods sold for the month of January.(Please round to the nearest whole dollar.)

Accepted Answer

C) Calculations: 10 × $4 + 15 × $4 + 35 × $4.25 = $249

Question 4

A company that uses the perpetual inventory system sold $1,000 of goods to a customer on account.Which of the following journal entries correctly records the Sales revenue?

Accepted Answer

Option D correctly records the sale of goods on account by increasing Accounts Receivable and recognizing Sales Revenue, reflecting the accrual accounting principle.

Question 5

Berring Sales uses FIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record and calculate the Ending inventory balance at the end of January.(Please round to the nearest whole dollar.)

Accepted Answer

B) Calculations: 5 × $4.25 + 30 × $3.80 = $135

Question 6

Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline & \text { Purchases } & & & \text { Sales } & & \
\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \
\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \
\hline 5 & 200 & 5 & 1,000 & & & \
\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \
\hline 15 & 100 & 6 & 600 & & & \
\hline 20 & 150 & 7 & 1,050 & & & \
\hline 25 & & & & 200 & 11 & \$ 2,200 \
\hline 30 & 160 & 8 & 1,280 & & & \
\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \
\hline
\end{array}$$
- If Santa Fe uses average-cost,how much was the Cost of goods sold for the month?

Accepted Answer

To calculate the average cost, divide the total cost of purchases ($4,330) by the total units purchased (710), which gives an average cost per unit of $6.10. Multiply this by the units sold (300) to get the cost of goods sold: $6.10 * 300 = $1,830. However, the correct answer should be $1,615, indicating a calculation error in the options provided.

Question 7

Berring Sales uses LIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record and calculate the Inventory balance at the end of January.(Please round to the nearest whole dollar.)

Accepted Answer

C) Calculations: 25 × $4 + 10 × $4.25 = $143

Question 8

Berring Sales uses LIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record and calculate the Cost of goods sold for the month of January.(Please round to the nearest whole dollar.)

Accepted Answer

A) Calculations: 10 × $4.25 + 30 × $3.80 + 20 × $4.25 = $242

Question 9

A company that uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.The company sold the whole lot to a supermarket chain for $10,000 on account.Which of the following entries correctly records the Sales revenue?

Accepted Answer

The correct entry for recording sales revenue involves debiting Accounts Receivable and crediting Sales Revenue for the amount of the sale, which in this case is $10,000. This reflects the increase in receivables and the recognition of revenue from the sale.

Question 10

Berring Sales uses the average-cost method.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record through the January 14 sale,and calculate the Inventory balance after the January 14 sale.(Please round to the nearest whole dollar.)

Accepted Answer

D) Calculations: 55 × $4.15 = $228

Question 11

A company that uses the perpetual inventory system sold $1,000 of goods to a customer on account.The inventory had been purchased by the company for $400.Which of the following journal entries correctly records the Cost of goods sold?

Accepted Answer

Option C is correct because it accurately reflects the decrease in inventory and records the cost of goods sold. In a perpetual inventory system, when goods are sold, the cost of the goods sold is debited to the Cost of Goods Sold account and credited to the Inventory account to reflect the reduction in inventory.

Question 12

Berring Sales uses the average-cost method.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record through the January 14 sale,and calculate the Cost of goods sold for the January 14 sale.(Please round to the nearest whole dollar.)

Accepted Answer

C) Calculations: 10 × $4.15 = $42

Question 13

Berring Sales uses LIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record through the January 14 sale,and calculate the Inventory balance after the January 14 sale.(Please round to the nearest whole dollar.)

Accepted Answer

D) Calculations: 25 × $4 + 30 × $4.25 = $228

Question 14

Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline & \text { Purchases } & & & \text { Sales } & & \
\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \
\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \
\hline 5 & 200 & 5 & 1,000 & & & \
\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \
\hline 15 & 100 & 6 & 600 & & & \
\hline 20 & 150 & 7 & 1,050 & & & \
\hline 25 & & & & 200 & 11 & \$ 2,200 \
\hline 30 & 160 & 8 & 1,280 & & & \
\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \
\hline
\end{array}$$
- If Santa Fe uses LIFO costing,how much was the Ending inventory balance?

Accepted Answer

The answer of Santa Fe Tile Company had the following...

Question 15

Berring Sales uses the average-cost method.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record and calculate the Inventory balance at the end of January.(Please round to the nearest whole dollar.)

Accepted Answer

C) Calculations: 35 × $4.02 = $141

Question 16

A company that uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.The company sold the whole lot to a supermarket chain for $10,000 on account.The company uses the specific-identification method of inventory costing.Which of the following entries correctly records the Cost of goods sold?

Accepted Answer

The correct entry to record the Cost of Goods Sold (COGS) includes both the purchase cost of the goods ($8,000) and the freight-in costs ($750), totaling $8,750. This amount is moved from Inventory to Cost of Goods Sold to reflect the cost of the inventory that was sold.

Question 17

Berring Sales uses the average-cost method.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record and calculate the Cost of goods sold for the month of January.(Please round to the nearest whole dollar.)

Accepted Answer

A) Calculations: 10 × $4.15 + 50 × $4.02 = $243

Question 18

A company that uses the perpetual inventory system sold $1,000 of goods to a customer for cash.Which of the following journal entries correctly records the Sales revenue?

Accepted Answer

Option B is correct because it records the receipt of cash and the recognition of sales revenue, which is the correct way to record a cash sale in accounting.

Question 19

Santa Fe Tile Company had the following inventory purchases and sales during the month of May.The company uses the periodic inventory method. $$\begin{array} { | c | c | c | c | c | c | c | } 
\hline & \text { Purchases } & & & \text { Sales } & & \
\hline \text { Date } & \text { Units } & \text { Unit Cost } & \text { Total } & \text { Units } & \text { Unit Price } & \text { Total } \
\hline \text { May 1 } & 100 & \$ 4 & \$ 400 & & & \
\hline 5 & 200 & 5 & 1,000 & & & \
\hline 10 & & & & 100 & \$ 10 & \$ 1,000 \
\hline 15 & 100 & 6 & 600 & & & \
\hline 20 & 150 & 7 & 1,050 & & & \
\hline 25 & & & & 200 & 11 & \$ 2,200 \
\hline 30 & 160 & 8 & 1,280 & & & \
\hline & 710 & & \$ 4,330 & 300 & & \$ 3,200 \
\hline
\end{array}$$
- If Santa Fe uses average-cost,how much was the Ending inventory balance?

Accepted Answer

The answer of Santa Fe Tile Company had the following...

Question 20

Berring Sales uses FIFO.The partially completed inventory record for January appears below.  On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record through the January 14 sale and calculate the Cost of goods sold for the sale on January 14.(Please round to the nearest whole dollar.)

Accepted Answer

A) Calculations: 10 × $4 = $40

Quiz 6: Merchandising Inventory

A company that uses the perpetual inventory system sold $1,000 of goods to a customer on account.Which of the following journal entries correctly records the Sales revenue?

A company that uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.The company sold the whole lot to a supermarket chain for $10,000 on account.Which of the following entries correctly records the Sales revenue?

A company that uses the perpetual inventory system sold $1,000 of goods to a customer on account.The inventory had been purchased by the company for $400.Which of the following journal entries correctly records the Cost of goods sold?

A company that uses the perpetual inventory system sold $1,000 of goods to a customer for cash.Which of the following journal entries correctly records the Sales revenue?