Reference no: EM132852604

Questions -

Q1. Bee's purchases per purchase invoice is 150,000. The purchase discount is 2/10, n/30. Freight is 500, FOB shipping point, freight collect. Determine the net purchase amounts under the net method?

a. 147,500

b. 147,000

c. 148,500

d. 150,500

Q2. The gross profit is 100,000; goods available for sale is 1,100,000; beginning inventory is 100,000; purchases is 1,000,000; and sales is 1,000,000. Determine the ending inventory?

a. 200,000

b. 300,000

c. 100,000

d. 0

Q3. Cee is using the periodic inventory system. For the year, its total purchases amounted to 250,000. Its unsold merchandise at the end of the year has a cost of 5,000 which is 80% of its beginning inventory. Determine the Cee's cost of sales?

a. 249,000

b. 251,250

c. 250,000

d. 248,750

Q4. On the eve of February 14, a fire destroyed the entire merchandise inventory of Dee Merchandising. The merchandise were not insured with any insurance company. The following data were gathered: Inventory, January 1 - 250,000; Purchases from January 1 to February 14 - 1,500,000; Sales from January 1 to February 14 - 2,000,000; Mark up percentage on cost - 25%. What is the approximate inventory loss as a result of the fire?

a. 312,500

b. 1,500,000

c. 150,000

d. 250,000

Q5. EE Company prepares monthly income statements. A physical inventory is taken only at year-end, hence, month-end inventories must be estimated. All sales are made on account. The rate of markup on cost is 50%. The following information relates to the month of April: Accounts receivable, April 1 - 102,000; Accounts receivable, April 30 - 153,000; Collection of accounts receivable during April - 255,000; Inventory, April 1 - 183,600; Purchases during April - 163,200. How much is the estimated cost of April 30 inventory?

a. 142,800

b. 224,400

c. 193,800

d. 122,400