ACCTG 211 Study Guide - Final Guide: Gross Margin, Weighted Arithmetic Mean, Stock Split
Warning: do not assume your actual Block 2 Exam for ACCTG 211
will be exactly like what you see below. The sample exam below is
based on information that we feel is important to reinforce via
practice problems. Refer to your notes from class and all other
sources for this semester to determine the complete set of topics that
will be covered on the exam. So what is the value of this sample
exam? It is simply offered as a means to help you study the basic
concepts we have addressed in class and provide a look at how the
concepts might be applied on a sample exam. Refer all questions to
members of the instructional team (instructors and/or TAs).
ACCTG 211 SAMPLE EXAM #2
1. In 1996, Rizzo Co. had Beginning Inventory of $24,000 and Ending Inventory of $17,000. Sales Revenue
during 1996 totaled $40,000. The gross profit percentage for previous years was 25% of sales. The purchase
receipts file was destroyed in a fire during 1996. Based on the given information, what were purchases in 1996?
a. $17,000
b. $27,000
c. $30,000
d. $33,000
e. $23,000
Note: for the exam, be ready to also solve for estimated Ending Inventory. A practice problem for the
Ending Inventory perspective can be found in the textbook Appendix 5B.
The following information relates to Questions 2-12: Bonner Co. has provided the following information:
Beginning Inventory on July 1st, 2014
300 units @ $1.00
Purchase on July 4th, 2014
1,000 units @ $1.10
Sales on July 9th, 2014
1,250 units @ $2.00
Purchase on July 15th, 2014
500 units @ $1.16
Sales on July 19th, 2014
450 units @ $2.00
2. Ending Inventory determined using periodic LIFO would be:
a. $116
b. $110
c. $108
d. $100
3. Cost of Goods Sold determined using periodic LIFO would be:
a. $1,870
b. $1,872
c. $1,880
d. $1,864
4. Ending Inventory determined using periodic FIFO would be:
a. $116
b. $110
c. $108
d. $100
5. Cost of Goods Sold determined using periodic FIFO would be:
a. $1,870
b. $1,872
c. $1,880
d. $1,864
6. Ending Inventory determined using periodic average cost (weighted average cost) method would be:
a. $116
b. $110
c. $108
d. $100
7. Cost of Goods Sold determined using periodic average cost (weighted average cost) method would be:
a. $1,870
b. $1,872
c. $1,880
d. $1,864
8. Determine gross margin if the periodic average cost (weighted average cost) method is used.
a. $1,536
b. $1,520
c. $1,530
d $1,590
9. Ending Inventory determined using perpetual LIFO would be:
a. $116
b. $110
c. $108
d. $100
10. Cost of Goods Sold determined using perpetual LIFO would be:
a. $1,870
b. $1,872
c. $1,880
d. $1,864
11. Ending Inventory determined using perpetual FIFO would be:
a. $116
b. $110
c. $108
d. $100
12. Cost of Goods Sold determined using perpetual FIFO would be:
a. $1,870
b. $1,872
c. $1,880
d. $1,864
The following information relates to Questions 13 and 14: On January 1, 1991, Washington Corporation
purchased a $100,000 machine that has an expected useful life of five years and a salvage value of $10,000.
13. Book Value on 12/31/92 under the straight-line method would be:
a. 80,000
b. 64,000
c. 32,000
d. 68,000
14. Accumulated Depreciation on 12/31/92 under the double-declining balance method would be:
a. 60,000
b. 80,000
c. 64,000
d. 40,000
15. Which of the following journal entries is appropriate when a long-term operating asset (machine) is sold at a
loss.
a.
Cash
Accum. Depreciation
Loss on Sale
1,000
3,000
2,000
Machine
6,000
b.
Cash
Machine
1,000
6,000
Loss on sale
Accum. Depreciation
4,000
3,000
c.
Cash
Accum. Depreciation
1,000
3,000
Loss on sale
Machine
500
3,500
d.
Cash
4,000
Loss on sale
Accum. Depreciation
Machine
500
500
3,000
Document Summary
Warning: do not assume your actual block 2 exam for acctg 211 will be exactly like what you see below. The sample exam below is based on information that we feel is important to reinforce via practice problems. Refer to your notes from class and all other sources for this semester to determine the complete set of topics that will be covered on the exam. It is simply offered as a means to help you study the basic concepts we have addressed in class and provide a look at how the concepts might be applied on a sample exam. Refer all questions to members of the instructional team (instructors and/or tas). Acctg 211 sample exam #2: in 1996, rizzo co. had beginning inventory of ,000 and ending inventory of ,000. The gross profit percentage for previous years was 25% of sales. The purchase receipts file was destroyed in a fire during 1996.
