Northwest fur co started 2013 with 94000 of

This preview shows page 3 - 5 out of 44 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial Accounting: The Impact on Decision Makers
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 5-16
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
Northwest Fur Co. started 2013 with $94,000 of merchandise inventory on hand. During 2013, $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.30.What is ending inventory assuming Northwest uses the gross method to record purchases? A. $112,490.B. $112,550.C. $116,500.D. $120,300.
31.Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial Accounting: The Impact on Decision Makers
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise 5-16
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
Cinnamon Buns Co. (CBC) started 2013 with $52,000 of merchandise on hand. During 2013, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.32.Assuming CBC uses the gross method to record purchases, ending inventory would be:
33.What is cost of goods available for sale, assuming CBC uses the gross method?
34.Cost of goods sold is given by: A. Beginning inventory - net purchases + ending inventory.B. Beginning inventory + accounts payable - net purchases.C. Net purchases + ending inventory - beginning inventory.D. Net Purchases + beginning inventory - ending inventory.
35.The LIFO Conformity Rule states that if LIFO is used for:
36.The largest expense on a retailer's income statement is typically:
37.In a perpetual average cost system:

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture