1.How does the periodic inventory accounting method track inventory and the Cost of Goods Sold?

By calculatingthe current inventory and the Cost of Goods Sold in the middle of the period

By calculatingthe current inventory and the Cost of Goods Sold at the beginning of the period

By calculatingthe current inventory and the Cost of Goods Sold in real time

By calculating the current inventory and the Cost of Goods Sold at the end of the period

2.Beginning Inventory and Purchases

Purchased Units Unit Cost Total Cost

Beginning Inventory 15 $2 $30

May 16 $4 $64

June 20 $3 $60

July 12 $5 $60

Units Available For Sale63 $214

Ending Inventory

Units on Hand 21 Cost of Units on Hand $

Units Sold 42 Cost of Goods Sold $

Using the FIFO method and the information in this image, what is the Cost of Units on Hand and the Cost of Goods Sold during this period?

Cost of Units on Hand: $160

Cost of Goods Sold: $54

Cost of Units on Hand: $22

Cost of Goods Sold: $162

Cost of Units on Hand: $87

Cost of Goods Sold: $127

Cost of Units on Hand: $97

Cost of Goods Sold: $87

3.Beginning Inventory and Purchases

Purchased Units Unit Cost Total Cost

Beginning Inventory 400 $5 $2,000

January650 $3 $1,950

February 925 $4 $3,700

March 1,165 $2 $2,330

Units Available For Sale3,140 $9,980

Ending Inventory

Units on Hand 1,100 Cost of Units on Hand $

Units Sold 2,040 Cost of Goods Sold $

Using the LIFO method and the information in this table, what is the Cost of Units on Hand and the Cost of Goods Sold during this period?

Units on Hand: $7,780

Cost of Goods Sold: $2,200

Units on Hand: $4,150

Cost of Goods Sold: $5,830

Units on Hand: $7,880

Cost of Goods Sold: $2,100

Units on Hand: $3,950

Cost of Goods Sold: $6,030

4.Taylor owns a boutique that sellsscarves and jackets. She has 35 scarves on the floor and 5 in the storeroom. Taylor also has 15 jackets on the floor and 8 more in the storeroom. She purchased each scarf for $28 and each jacket for $95. Using the weighted average cost method, the cost of each item being sold is __________.

$61.50

$54.63

$48.70

$52.46

5.Which of the following descriptions corresponds with the weighted average inventory valuation method?

It tends to be used for inventories of large, unique items.

Inventory purchased first has a greater weight than inventory purchased later.

It matches the cost of items purchased against the cost of items in inventory.

It disregards when inventory was purchased.

6.Which inventory method is used when the natural flow of goods is followed?

LIFO

Specific ID

FIFO

Weighted average

7.Choose the option that correctly sequences the flow of information in the financial statements of a merchandising company.

Income StatementEnding CapitalBalance SheetEnding Capital

Income StatementNet IncomeStatement of Changes in Owner's EquityBalance SheetEnding Capital

Income StatementNet IncomeEnding CapitalBalance Sheet

Income Statement Net IncomeStatement of Changes in Owner's EquityEnding CapitalBalance Sheet

8.Revenue $927,000

Sales Returns $25,000

Sales Discounts$15,100

Net Sales $886,900

Cost of Goods Sold $168,500

Gross Profit

Gross Profit Margin %

Given the information provided above, what are the Gross Profit and Gross Margin Ratios?

Gross Profit: $846,800

Gross Margin Ratio: 91%

Gross Profit: $718,400

Gross Margin Ratio: 81%

Gross Profit: $1,055,400

Gross Margin Ratio: 84%

Gross Profit: $758,500

Gross Margin Ratio: 82%

9.During the past 6 months, Roberta sold goods that cost$35,500. Her expenses totaled $2,500 and her freight-in totaled $750. Her company's average stock of goods during the same period was $9,500. The inventory turnover ratio for Roberta's company is __________.

3.39

3.55

3.47

3.74