Reference no: EM131959683

1. A firm’s beginning inventory is $31,000, goods purchased during the period cost $116,000, and the cost of goods sold for the period is $136,000. What is the amount of its ending inventory?1_24_2016_QC_CS-70807

$41,000

$20,000

$21,000

$11,000

2. Your store buys ice cream at a cost of $2.25 a half gallon and sells it for $5.50 a half gallon. Selling, general, and administrative expenses are $1.05 per half gallon. Which of the following statements is correct?

The difference between the selling price and the cost is recorded in the gross profit account.

Your gross profit per half gallon is $2.20.

The difference between the selling price and the cost is recorded in the Net Profit account.

Your gross profit per half gallon is $3.25.

3. Beginning inventory plus purchases equals:

ending inventory.

cost of goods sold.

goods available for sale.

net purchases.

4. Thompson Company had beginning inventory of $6,000, cost of goods sold of $14,000, and ending inventory of $8,000. Purchases were:

$12,000.

$10,000.

$9,000.

$16,000.

5. Goods available for sale can:

be sold and then become cost of goods sold on the income statement

not be sold and thus are not reported as Cost of Goods Sold on the balance sheet

not be sold and thus are reported as Inventory on the income statement

be sold and thus reported as Cost of Goods Sold on the balance sheet