2361 Exam 2 practice Ch 5, 6 Inventories _4_

2361 Exam 2 practice Ch 5, 6 Inventories _4_ - Questions...

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Questions: Chapters 5 & 6 Inventories Chapter 7: Accounting Framework; calculating net sales, cost of goods sold, gross profit, net income; ratio analysis 1 - 5. Use the following information to answer questions 1 through 5: The following are possible line items on an income statement: A = Gross Profit B = Net Sales C = Cost of Goods Sold D = Net Income/Loss E = Goods Available for Sale Identify the items above with the following descriptions by placing the correct letter ("A" through "E") in the space provided. Each item above may be used once, more than once, or not at all. ____1. Beginning Inventory + Purchases - Ending Inventory ____2. Sales - Sales Returns - Sales Allowances - Sales Discounts ____3. Net Sales - Cost of Goods Sold ____4. Beginning Inventory + Purchases ____5. Gross Profit - Operating and Other Expenses + Gains - Losses ____6. On December 28, 2008, Alpha Co. submitted a purchase order to Beta Company for goods costing $12,000. The terms of the purchase/sale were "FOB Shipping Point". On December 30 the goods were picked up at Beta's warehouse by Charlie Trucking Co. The goods were delivered to Alpha Co. on January 4, 2009. As of December 31, 2008, the goods should be included in the inventory of A. Alpha Co. B. Beta Co. C. Charlie Co.
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