Backflush costing does not account for

Question 1 options:

	Raw materials inventory
	WIP inventory
	Cost of Goods Sold
	Finished goods inventory

Question 2 (1 point)

Goods that are completed in the production process of a manufacturing business

Question 2 options:

	Decrease work-in-process inventory and decrease finished goods inventory
	Decrease finished goods inventory and increase cost of goods sold
	Increase work-in-process inventory and decrease finished goods inventory
	Decrease work-in-process inventory and increase finished goods inventory

Question 3 (1 point)

Opening inventory for a month is $ 25,000 and closing inventory for the same month is $ 30,000. Cost of goods sold for that month is $ 35,000. Purchases for the month are:

Question 3 options:

	$ 40,000
	$ 30,000
	$ 50,000
	$ 20,000

Question 4 (1 point)

In a retail organization, sales

Question 4 options:

	Decrease inventory and decrease cost of goods sold
	Increase inventory and decrease cost of goods sold
	Increase inventory and increase cost of goods sold
	Decrease inventory and increase costs of goods sold

Question 5 (1 point)

A store has identified the following data from its accounting records for the year ended December 31:

Sales: $ 1,100,000

Purchases: $ 650,000

General and Admin. Expenses: $ 275,000

Opening Inventory: $ 150,000

Closing Inventory: $ 200,000

Based on this information, the gross profit and operating profit/loss is:

Question 5 options:

	A gross profit of $ 500,000 and operating profit of $ 185,000
	A gross profit of $ 400,000 and operating profit of $ 125,000
	A gross profit of $ 450,000 and operating profit of $ 185,000
	A gross profit of $ 500,000 and operating profit of $ 225,000

Question 6 (1 point)

The key advantage of a Just-in-time inventory management system is

Question 6 options:

	The reduction in carrying costs
	Improved relationships with suppliers
	Greater employee satisfaction
	All of the above

Question 7 (1 point)

An item of inventory is purchased for $ 1,500. the sales price was $ 2,000, but as the item ha now been replaced by a new model, it can only be sold for a discounted price of $ 1,350. The scrap value of the item is $ 1,100. To scrap the inventory will involve transport costs of $ 100. The value of the inventory for statement of financial position is:

Question 7 options:

	$ 1,350
	$ 1,500
	$ 1,250
	$ 1,000

Question 8 (1 point)

Purchases made during the month:

Feb 10 6,000 @ $2.00

Feb 20 3,000 @ $ 2.20

Feb 28 2,000 @ $ 2.30

The cost of 8,000 units sold in the month and the value of ending inventory using the weighted average method are:

Question 8 options:

	$ 52,000; $ 19,500
	$ 16,873; $ 6,327
	$ 16,400; $ 6,800
	$ 17,000; $ 7,000

Question 9 (1 point)

Purchases made during the month:

Feb 10 6,000 @ $ 2.00

Feb 20 3,000 @ $ 2.20

Feb 28 2,000 @ $ 2.30

The cost of 8,000 units sold in the month and the value of ending inventory using the FIFO method are:

Question 9 options:

	$ 16,873; $ 6,327
	$ 52,000; $ 19,500
	$ 17,000; $ 7,000
	$ 16,400; $ 6,800

Question 10 (1 point)

Kurt's Kitchen orders 1,000 package of ketchup per month to meet customer demand. The ketchup ordering cost is $ 50 per order, while the ketchup carrying cost is $ 0.02 per package. What is the EOQ for ketchup?

Question 10 options:

	480
	7,746
	155
	2,236