{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Homework Session 12 Spring 2010

Homework Session 12 Spring 2010 - CH ANGED Homework Session...

This preview shows pages 1–4. Sign up to view the full content.

CHANGED Homework Session 12 Spring 2010 ANSWERS TO MULTIPLE CHOICE 1. a) 2. d) 3. a) 4. b) 5. c) 6. c) 7. a) 8. c) 9. c) 10. a) M 7–2. To record the purchase of 90 new shirts in accordance with the cost principle (perpetual inventory system): Inventory (+A). ............................................................... 2,500 Cash ( - A). ........................................................... 2,500 Cost: \$2,180 + \$175 + \$145 = \$2,500. The \$120 interest expense is not a proper cost of the merchandise; it is recorded as prepaid interest expense and later as interest expense. M7–4. Computation : Simply rearrange the basic inventory model (BI + P – EI = COGS): Cost of goods sold . ................................................. \$10,969 million + Ending inventory . ................................................ 3,062 million – Beginning inventory . ............................................... (2,969 ) million Purchases . .............................................................. \$11,062 million

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
E7–2. (Italics for missing amounts only.) Case A. ......... Case BCase C Net sales revenue. .......... \$8,000 \$ 5,500 \$6,000 Beginning inventory. ....... \$11,200 \$ 6,500 \$ 4,000 Purchases ................... 5,000 8,550 9,500 Goods available for sale. 16,200 15,050 13,500 Ending inventory. ............ 10,200 11,050 9,000 Cost of goods sold. ......... 6,000 4,000 4,500 Gross profit ................... 2,000 1,500 1,500 Expenses ................... 400 1,800 700 Pretax income. ................ \$ 1,600 \$ (300 ) \$ 800
E7–8. Req. 1 SCORESBY, INC. Income Statement For the Year Ended December 31, 2012 Case A Case B FIFO LIFO Sales revenue 1 ............................... .\$696,000 \$696,000 Cost of goods sold: Beginning inventory \$ 35,000 \$ 35,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 9

Homework Session 12 Spring 2010 - CH ANGED Homework Session...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online