The operating expenses section of an income statement for a merchandising

# The operating expenses section of an income statement

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19.The operating expenses section of an income statement for a merchandising companywould notincludea.Freight-out.3
b.Utilities expense.c.Cost of goods sold.d.Insurance expense.20.Financial information is presented below:Operating expenses\$ 36,000Sales revenue150,000Cost of goods sold105,000Gross profit would be21.Financial information is presented below:Operating expenses\$ 45,000Sales returns and allowances4,000Sales discounts6,000Sales revenue160,000Cost of goods sold90,000The amount of net sales on the income statement would be4
Chapter 6:22.If goods in transit are shipped FOB destination23.Tidwell Company's goods in transit at December 31 include sales made(1) FOB destination(2) FOB shipping pointand purchases made(3) FOB destination(4) FOB shipping point.Which items should be included in Tidwell's inventory at December 31?a.(2) and (4)b.(1) and (4) c.(1) and (3)d.(2) and (4)24.Which of the following statements is correct with respect to inventories?25.The LIFO inventory method assumes that the cost of the latest units purchased are26.A company purchased inventory as follows:200 units at \$5.00300 units at \$5.50The average unit cost for inventory is: Ex: 200 x \$5=1000, 300 x \$5.50= 1650, 1000 + 1650= 2650 / 500 (200+300) = \$5.35
27.Alpha First Company just began business and made the following four inventorypurchases in June:June1150 units\$ 780June10200 units1,170 June15200 units1,260June28150 units990\$4,200A physical count of merchandise inventory on June 30 reveals that there are 210 units onhand. Using the LIFO inventory method, the value of the ending inventoryon June 30isa.\$1,092210-150=60b.\$1,131 1170/200= \$5.85, 5.85 x 60= \$351c.\$1,386\$351+\$780= \$1131d.\$1,368

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• Spring '14