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Unformatted text preview: Nova Southeastern University H. Wayne Huizenga School of Business & Entrepreneurship Assignment for Course: ACT 5741 Submitted to: Susan Sparis Submitted by: Andrew Vera N00936170 335 Collins Ave 305-890-7454 (Home phone number) Date of Submission: 12/30/11 Title of Assignment: Homework 2 Inventory,Prop Plant CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student’s Signature: __Andrew Vera Instructor’s Grade on Assignment: Instructor’s Comments: 2. Under the net method, purchase discounts lost are: C. Included in interest expense. Northwest Fur Co. started 2011 with $94,000 of merchandise inventory on hand. During 2011, $400,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. Northwest uses a perpetual inventory system. 4. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale? D. $492,550. 6. During periods when costs are rising and inventory quantities are stable, cost of goods sold will be: ....
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- Spring '11
- retail inventory, retail inventory method, retail method, dollar-value lifo, LIFO retail method