Reference no: EM132792962

problem 1: Which of the following is subtracted from sales revenue to arrive at net sales revenue?

A) Sales discounts and sales returns and allowances

B) Operating expenses

C) Cost of goods sold

D) Cost of goods available for sale

problem 2: Under which of the following inventory costing methods is ending inventory based on the cost of the oldest purchases?

A) Specific unit cost

B) Average cost

C) Last in first out

D) First in first out

problem 3: A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the FIFO inventory costing method, which of the following amounts will be the amount of inventory on the December 31 balance sheet?

A) $1,500

B) $1,000

C) $1,250

D) $2,250