Question

Question 31

Corresponds to CLO 7(c) Rupert Hobby's accounting records showthe following for the year ending December 31, 2014: PurchaseDiscounts…$13,400; Freight-in…$12,000; Purchases…$450,500;Beginning Inventory…$35,600; Ending Inventory…$24,200; PurchaseReturns…$15,000. Using the periodic inventory system, what is thecost of goods sold?

		$445,500
		$469,700
		$433,500
		$461,900

3 points

Question 32

Corresponds to CLO 7(d) Bay Company sold $100,000 of merchandisein the month of April, 2013. Returns that month totaled $5,000. BayCompany uses the periodic method to determine ending inventory eachDecember 31. For interim financial statements, cost of goods soldis estimated based on the previous year's gross profit rate. If BayCompany's gross profit rate for 2012 was 60%, what is the cost ofgoods sold for the month of April?

		$57,000
		$60,000
		$38,000
		$40,000

3 points

Question 33

Corresponds to CLO 8(a) We Love Pets, Inc. has the followinginventory data: January 1, beginning inventory of 50 units at $25;January 10, purchases of 70 units at $27; January 25, purchases of40 units at $28. A physical count of inventory on January 31reveals that there are 45 units on hand. Using the FIFO inventorymethod, cost of goods sold for January is

		$3,135
		$3,005
		$2,875
		$1,255

3 points

Question 34

Corresponds to CLO 8(b) Party Retailers has the followinginventory data: May 1, beginning inventory of 200 units at $10; May14, purchases of 300 units at $12; May 23, purchases of 250 unitsat $15. A physical count of inventory on May 31 reveals that thereare 300 units on hand. Using the LIFO inventory method, endinginventory for May is

		$3,000
		$6,150
		$4,350
		$3,200

3 points

Question 35

Corresponds to CLO 8(c) Halting Corporation has the followinginventory data: September 1, beginning inventory of 430 units at$11; September 8, purchases of 350 units at $12; September 21,purchases of 460 units at $14. A physical count of inventory onSeptember 30 reveals that there are 400 units on hand. Using theweighted average inventory method, rounding the unit cost to thenearest penny, what is cost of goods sold for September?

		$10,357
		$4,960
		$10,416
		$4,932

3 points

Question 36

Corresponds to CLO 8(d) Unleash Corporation is a retaileroperating in an industry currently experiencing high inflation.Unleash wants to show the lowest cost of goods sold on its incomestatement in order to show higher profits. Which inventory costingmethod should Unleash use?

		FIFO because cost of goods sold represents the earliestcosts.
		Average because cost of goods sold will represent an averageamount.
		Specific identification because it involves the actualcosts.
		LIFO because cost of goods sold represents the latest costs.

3 points

Question 37

Corresponds to CLO 9(a) The following balance sheet and incomestatement data is available for Gold River Corporation: Currentassets…$125,000; Total assets…$520,000; Net income…$345,000;Current liabilities…$80,000; Total liabilities…$150,000;Stockholders' equity…$370,000; Average common shares outstanding…10,000. What is Gold River's current ratio?

		3.47
		1.64
		1.56
		0.83

3 points

Question 38

Corresponds to CLO 9(b) The following balance sheet data isavailable for Pinpoint Products: Current assets…$50,000; Property,plant, and equipment,…$70,000…Other assets…$10,000; Currentliabilities…$30,000; Long-term liabilities…$22,000; Stockholders'equity…$78,000; Average common shares outstanding… 10,000. What isPinpoint's debt to total assets, shown as a percentage?

		60%
		45%
		67%
		40%

3 points

Question 39

Corresponds to CLO 9(c) The following balance sheet and incomestatement data is available for Frame Manufacturing: Totalassets…$520,000; Total liabilities…$250,000; Stockholders'equity…$270,000; Gross profit…$55,000; Net income…$40,000; Averagecommon shares outstanding… 25,000. What is Frame Manufacturing'searnings per share?

		$10.80
		$3.50
		$1.60
		$2.20

3 points

Question 40

Corresponds to CLO 9(d) The following financial information isavailable for Maroon Corporation: Sales revenue…$200,000; Cost ofgoods sold…$120,000; Operating expenses…$40,000. What is Maroon'sgross profit rate, shown as a percentage?

		20%
		80%
		60%
		40%