Reference no: EM132778326
Roki Inc. uses the periodic inventory system and has the following data for the month of June:
June
1
On hand, 50 units @ $15.00 each $ 750.00
5
Purchased 115 units @ $15.10 each 1,736.50
14
Purchased 75 units @ $15.20 each 1,140.00
Total cost of goods available for sale $3,626.50
30 On hand, 90 units
Problem 1: If the June 30 inventory included 45 units from the June 5 purchase and 45 units from the June 14 purchase, Roki's cost of goods sold for June under the specific identification method would be
a.$2.373.00.
b.$2,263.00.
c.$3,626.50.
d.$2,945.00.
Problem 2: Which one of the following is a common analytical tool used by merchandising companies, but not by service companies?
a. Current ratio
b. Earnings per share
c. Working capital
d. Gross profit ratio
Problem 3: Cost of goods sold is equal to the
a. cost of goods purchased plus transportation-in costs plus beginning inventory minus purchase returns and allowances and purchase discounts minus ending inventory.
b. cost of goods purchased plus transportation-in costs less ending inventory.
c. cost of goods purchased plus transportation-in costs plus beginning inventory minus purchase returns and allowances and purchase discounts.
d. total amount of merchandise purchased during the year.