ACC 100: Unit 3 milestone with answers. 100% Correct.

ACC 100: Unit 3 milestone with answers

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1

Based on the information in the expanded income statement below, which of the following is the total of the Goods Available for Sale?

·         $37,000

·         $72,000

·         $47,00

·         $35,000

2

Which inventory method was used to calculate cost of goods sold, based on the information above?

·         Weighted average

·         Specific ID

·         LIFO

·         FIFO

3

Adam has 40 T-8 light fixtures that he purchased for $12 each and 240 T-5 light fixtures that he purchased for $16 each on the floor of his lighting supply store. He also has 80 T-8 fixtures and 120 T-5 fixtures in his warehouse.

What is the unit cost of the light fixtures if Adam implements the weighted average inventory valuation method?

·         $15.00

·         $13.00

·         $16.00

·         $12.00

4

Which business below uses a perpetual inventory method?

·         A car dealership

·         A pet food store

·         An antique shop

·         A boat store

5

Given the information above, which of the following is the Gross Margin percentage?

·         57%

·         63%

·         65%

·         52%

6

Acme Furniture purchased 10 desks for $100 each and paid the invoice in full within 20 days, which reduced the price of each desk to $90. 

Which of the following amounts would be recorded in the purchases account of Acme Furniture?

·         $900

·         $1,000

·         $200

·         $100

7

Using the information in the table below, what is the correct Cost of Goods Sold in August, using the LIFO method?

·         $3,125

·         $3,030

·         $2,750

·         $3,000

8

Based on this information, which of the following is the Cost of Goods Purchased?

·         $37,500

·         $27,500

·         $15,500

·         $18,500

9

In 2011, Matt's hunting store sold goods that cost $89,000, and had expenses that totaled $12,000. His average stock of goods during 2011 was $45,000.

Which of the following is Matt’s hunting store inventory turnover ratio in 2011?

·         1.71

·         3.75

·         6.42

·         1.98

10

Charlie's order of shoes is the freight at the manufacturer's warehouse in Hong Kong, and he has agreed to the FOB shipping point method. 

Who owns the freight when the shoes are at the Hong Kong loading docks, ready to be shipped to New York?

·         Charlie’s customer

·         Charlie

·         The supplier

·         The shipping company

11

Given the information below, which of the following is the Total Cost of Goods Sold?

·         $80,600

·         $81,300

·         $81,100

·         $78,900

12

If Kevin purchased 175 candles at $3 each and sold 90 candles for $7 each, which of the following is his cost of goods sold? 

·         $525

·         $630

·         $270

·         $735

13

Which of the following is the additional percentage that a shoe store discounted the price of a pair of boots that were originally priced at $175, marked down to $125, and finally sold for $100?

·         30%

·         15%

·         25%

·         20%

14

What is calculated only at the end of a period in the periodic inventory method?

·         Current inventory

·         Gross sales

·         Cost of goods purchased

·         Sales returns and allowances

15

Which of the following scenarios would use a purchases subsidiary ledger?

·         Maybelle wants to know which customers have been late on their payments.

·         Trudy wants to know which suppliers have raised their prices in the past year.

·         Ann Marie wants to determine whether to extend more credit to a customer.

·         John wants to identify his top 20 customers.

16

To determine goods available for sale, what is added to the total of the beginning inventory?

·         Sales returns and allowances

·         Cost of goods purchased

·         Net purchases

·         Purchase discounts

17

Compute the correct Cost of Goods Sold in September using the FIFO method, based on the information in the table above.

·         $1,805

·         $1,865

·         $3,910

·         $2,630

18

Which one of the businesses below would most likely use the FIFO method of inventory valuation?

·         Petroleum company

·         Stone and brick company

·         Luxury car dealership

·         Produce stand