learning objective 7 1 questions 1 given the following data what is cost of goods so 4306972

learning objective 7 1 questions 1 given the following data what is cost of goods so 4306972

Learning Objective 7.1 Questions

1) Given the following data, what is cost of goods sold?

Sales revenue $730,000

Beginning inventory 80,000

Ending inventory 95,000

Purchases of inventory160,000

A) $585,000

B) $145,000

C) $570,000

D) $175,000

E) $555,000

2) Given the following data, what is cost of goods sold?

Sales revenue $10,000

Beginning inventory 3,000

Ending inventory 7,000

Purchases of inventory 5,000

A) $12,000

B) $ 9,000

C) $ 8,000

D) $ 7,000

E) $ 1,000

3) Given the following information, determine the gross profit.

Accounts Receivable $ 14,000

Administrative Expenses 31,000

Cost of Goods Sold 142,000

Depreciation Expense 8,000

Income Tax Expense 4,000

Inventory 26,000

Sales 312,000

Selling Expenses 36,000

Wage Expense 75,000

A) $20,000

B) $ 16,000

C) $ 184,000

D) $156,000

E) $170,000

4) When comparing two companies with regard to profitability, it is not important to distinguish differences arising from accounting practices from differences caused by real economic conditions.

5) The cost of goods available for sale is determined by taking the cost of inventory purchased during the year combined with the cost of goods sold.

6) Inventory valuation is linked to gross profit because the inventory valuation involves allocating the cost of goods available for sale between cost of goods sold and ending inventory as of the balance sheet date.

7) Galvanized Piping purchased 80 pumps during the month of March, 20X9. When the company purchased the pumps, they had 10 pumps in inventory. At the end of March, 20X9, Galvanized Piping had 50 pumps left in inventory. Pumps have been purchased from Costfo Warehouse for $2.50 per pump since Galvanized Piping began operations in January, 20X9.

1) Calculate the cost valuation for ending inventory.

2) Calculate cost of goods sold.

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