Exam (elaborations)
UNIT 3 MILESTONE QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
- Course
- Institution
UNIT 3 MILESTONE QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
[Show more]
Content preview
UNIT 3 MILESTONE QUESTIONS ANDANSWERS WITH SOLUTIONS 2024
Charlie's order of shoes is the freight at the manufacturer's warehouse in Hong Kong, and he has agreed
to the FOB shipping point method. Who owns the freight when the shoes leave the Hong Kong loading
docks, shipped to New York? - ANSWER Charlie
Troy has 75 fuses that he purchased for $4 each and 17 air filters that he purchased for $12 each on the
floor of his auto repair shop. He has 80 of the same fuses and nine of the same air filters in his
storeroom. Which of the following is the weighted average cost of the fuses and air filters being sold if
Troy implements the weighted average method to inventory these supplies? - ANSWER $5.15
Which one of the businesses below would most likely use the FIFO method of inventory valuation? -
ANSWER Produce stand
Vern uses a perpetual inventory method at his store. This means that purchases are debited to his
merchandise inventory. Which of the following is credited to his merchandise inventory? - ANSWER Cost
of goods sold
Which business below uses a perpetual inventory method? - ANSWER A pet food store
Given the information in the partial income statement below, what is the cost of goods sold? $36,000,
$32,000, $1,800, $1,200, $29,000, $2,500, $31,500, $67,500, $14,000 - ANSWER $53,500
Acme Furniture purchased 10 desks for $100 each and paid the invoice in full within 20 days, which
reduced the price of each desk to $90. Which of the following amounts would be recorded in the
purchases account of Acme Furniture? - ANSWER $1,000
Using the LIFO method and the information in this image, what is the Cost of Goods Sold during
December? Total Cost $45,000, $120,000, $75,000, $240,000 - ANSWER $95,000
A men's store offered a discount for each purchase of a set of pants (regularly $95 each), and suit coat
(regularly $215 each).
If Mark bought two pairs of pants and two suit coats for a total of $558, what percentage did the store
offer for each set purchased? - ANSWER 10%
Roberta sold goods costing $35,500, her expenses totaled $2,500 and her freight in totaled $750. Her
company's average stock of goods during the same period was $9,500. The inventory turnover ratio for
Roberta's company is __________. - ANSWER 3.74
Given the information provided above, what is the gross margin percentage?
$103,600, $13,900, $2,700, $87,000, $23,600 - ANSWER 73%
Which of the following is a benefit of Robert having a subsidiary purchases ledger for his food and
beverage supply company? - ANSWER Determining which vendors Robert supplies most frequently
Which inventory method was used to calculate cost of goods sold, based on the information above?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Performance. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81113 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now