Acctg 211 Sample Exam # 2 MULTIPLE CHOICE (2 POINTS EACH) Choose the best answer 1. In 1996, Rizzo Co. had Beginning Inventory of S24,000 and Ending Inventory of S17,000. Sales Revenue during 1996 totaled $40,000. The gross profit percentage for previous years was 25% of sales. The purchase receipts file was destroyed in a fire during 1996. Based on the given information, what were purchases in 1996? a. $17,000 b. $27,000 c. $30,000 d. $33,000 e. $23,000 The following information relates to Questions 2-4: Bonner Co. has provided the following information: units a $1.00 1,000 units uses a periodic inventory were 53,400 1,700 units were sold 2. Ending Inventory determined using LIFO would be: a. 200 b. 1,864 c. 1.880 d. 100 3. Cost of Goods Sold determined using LIFO would be: a. 116 b. 1,864 c. 1,880 d. 100 4. Determine gross margin if the average cost (weighted average cost) method is used. a. 1,536 b. 1,520 c. 1,530 d 1,590 January 1, 1991, Washington Corporation purchased a $100,000 machine that has an expected useful life of five years and a salvage value of $10,000 5. Book Value on 12/31/92 under the straight-line method would be