1, Sunland’s Market recorded the following events involving a recent purchase of inventory:
Received goods for $121000, terms 2/15, n/30.
Returned $2900 of the shipment for credit.
Paid $700 freight on the shipment.
Paid the invoice within the discount period.
As a result of these events, the company’s inventory
increased by $116438.
increased by $116424.
increased by $118800.
increased by $115738.
2, The collection of a $1300 account within the 2 percent discount period will result in a
debit to Sales Discounts for $26.
debit to Accounts Receivable for $1274.
credit to Cash for $1274.
credit to Accounts Receivable for $1274.
3, Whispering Winds Corp. sells merchandise on account for $6900 to Wildhorse Co. with credit terms of 2/11, n/30. Wildhorse Co. returns $1600 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?
$6794
$5300
$5194
$6762
4,
Operating expenses $ 55000
Sales returns and allowances 3000
Sales discounts 9000
Sales revenue 200000
Cost of goods sold 89000
The amount of net sales on the income statement would be
$200000.
$188000.
$197000.
$191000.
5,
Operating expenses $ 42000
Sales returns and allowances 3000
Sales discounts 8000
Sales revenue 140000
Cost of goods sold 98000
Gross Profit would be
$45000.
$42000.
$31000.
$39000.
6,
Nov. 1 Inventory 23 units @ $4.70 each
8 Purchase 94 units @ $5.05 each
17 Purchase 47 units @ $4.90 each
25 Purchase 70 units @ $5.10 each
A physical count of merchandise inventory on November 30 reveals that there are 78 units on hand. Ending inventory under FIFO is
$396.
$386.
$784.
$774.
7,
Nov. 1 Inventory 28 units @ $5.50 each
8 Purchase 110 units @ $5.95 each
17 Purchase 55 units @ $5.80 each
25 Purchase 83 units @ $6.10 each
A physical count of merchandise inventory on November 30 reveals that there are 92 units on hand. Cost of goods sold under LIFO is
$1099.
$1075.
$559.
$535.
8,
Feb. 1, 2022 Purchase 125 $52
Mar. 14, 2022 Purchase 216 $55
May 1, 2022 Purchase 153 $57
The company sold 355 units at $73 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $2088, what is the company’s after-tax income using LIFO?
$2797.20
$3996.00
$4649.00
$3254.30
9, At May 1, 2022, Whispering Winds Corp. had beginning inventory consisting of 280 units with a unit cost of $6. During May, the company purchased inventory as follows:
▪ 550 units at $6
▪ 830 units at $7
The company sold 1380 units during the month for $11 per unit. Whispering Winds Corp. uses the average cost method. The value of Whispering Winds Corp.’s inventory at May 31, 2022 is (Round average cost per unit to 2 decimal places, e.g. 12.52.)
$10790.
$1820.
$1680.
$1960.
10,
The manager of Windsor is given a bonus based on net income before taxes. The net income after taxes is $52030 for FIFO and $43000 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager’s bonus if FIFO is adopted instead of LIFO?
$9030
$18060
$12900
$2580