Reference no: EM132631375
Problem 1: Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has $42,000 in inventory. During the quarter the company purchases $9700 of new inventory from a vendor, returned $1150 of inventory to the vendor, and took advantage of discounts from the vendor of $320. At the end of the quarter the balance in inventory is $32,500. What is the cost of goods sold?
Select one:
A. $17,730
B. $19,200
C. $19,700
D. $9500
Problem 2: The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Northview Company as they appear on the company's adjusted trial balance.
Accounts Payable $10,000
Accounts Receivable 20,000
Inventory 21,800
Advertising Expense 16,500
Cost of Goods Sold 125,000
Delivery Expense 6900
Income Tax Expense 2800
Insurance Expense 1000
Rent Expense 15,600
Sales Revenue 250,000
Sales Discounts 10,100
Sales Returns & Allowances 32,500
The gross profit percentage would be closest to:
Select one:
A. 72.0%.
B. 33.8%.
C. 84.9%.
D. 39.7%.