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UNIT 3 MILESTONE QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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UNIT 3 MILESTONE QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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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?
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