The following information is available for Kerr Company for 2004:

1. Freight-in ₱ 60,000 Purchase returns 150,000 Selling expenses 300,000 Ending inventory 520,000 The cost of goods sold is equal to 300% of selling expenses. What is the cost of goods available for sale?

Use the following information for the next two questions:

Queen Co. records purchases at net amounts. On May 5 Queen purchased merchandise on account,

₱32,000, terms 2/10, n/30. Queen returned ₱2,000 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid.

2. The amount to be recorded as a purchase return is

a. ₱1,800.

b. ₱2,040.

c. ₱2,000.

d. ₱1,960.

3. By how much should the account payable be adjusted on May 31?

a. ₱0.

b. ₱680.

c. ₱640.

d. ₱600.

Use the following information for the next two questions:

The following information was available from the inventory records of Moen Company for January:

Units Unit Cost Total Cost Balance at January 1 3,000 ₱9.77 ₱29,310 Purchases:

January 6 2,000 10.30 20,600 January 26 2,700 10.71 28,917 Sales:

January 7 (2,500)

January 31 (3,200)

4. Balance at January 31 2,000 4. Assuming that Moen does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest peso?

a. ₱21,010.

b. ₱20,474.

c. ₱20,520.

d. ₱20,720.

5. Assuming that Moen maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest peso?

a. ₱21,010.

b. ₱20,474.

c. ₱20,520.

d. ₱20,720.

Answer rating: 100% (QA)

1 Cost of Goods Available for Sale Calculation Cost of Goods Sold COGS 300 of Selling Expenses COGS ... View the full answer