Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming weighted-average cost would be

Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimals)

A) $1,711.

B) $1,700.

C) $1,720.

D) $1,708.

Answer: $1,711.

Dunbar sold 700 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimals)

A) $502.

B) $490.

C) $489.

D) $480.

Answer: $489.

Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming LIFO would be:

A) $1,730.

B) $1,700.

C) $1,720.

D) $1,710.

Answer: $1,720.

Dunbar sold 700 units of inventory during the month. Ending inventory assuming FIFO would be:

A) $500.

B) $490.

C) $470.

D) $480.

Answer: $500.

Marvin sold 2,300 units of inventory during the month. Ending inventory assuming LIFO would be:

A) $5,040.

B) $5,055.

C) $5,075.

D) $5,135.

Answer: $5,040.

Marvin sold 2,300 units of inventory during the month. Cost of goods sold assuming LIFO would be:

A) $16,800.

B) $16,760.

C) $16,540.

D) $16,660.

Answer: $16,760.

The inventory cost flow assumption that is least likely to match the physical flow of inventory for most companies is:

A) FIFO.

B) LIFO.

C) Weighted-average.

D) Specific identification.

Answer: LIFO.

Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be:

A) $1,730.

B) $1,700.

C) $1,720.

D) $1,710.

Answer: $1,700.

Dunbar sold 700 units of inventory during the month. Ending inventory assuming LIFO would be:

A) $500.

B) $490.

C) $470.

D) $480.

Answer: $480.

At what amount would Shoeless report cost of goods sold using the weighted-average cost flow assumption?

A) $110.

B) $73.

C) $70.

D) $105.

Answer: $105.

At what amount would Shoeless report gross profit using LIFO cost flow assumptions?

A) $105.

B) $80.

C) $175.

D) $120.

Answer: $80

At what amount would Shoeless report ending inventory using FIFO cost flow assumptions?

A) $55.

B) $170.

C) $110.

D) $70.

Answer: $110.

The inventory cost flow assumption that results in a random mixture of goods

The inventory cost flow assumption that results in a random mixture of goods being included in the balance of inventory and cost of goods sold is:

A) FIFO.

B) LIFO.

C) Weighted-average.

D) Lower of cost and net realizable value.

Answer: Weighted-average.

The inventory costing method that matches each unit of inventory with its actual cost is referred to as the ________ method.

A) Weighted-average.

B) Specific identification.

C) Actual cost.

D) Matching unit.

Answer: Specific identification

The inventory cost flow assumption that generally best matches the physical flow of inventory is:

A) FIFO.

B) LIFO.

C) Weighted-average.

D) Lower of cost and net realizable value.

Answer: FIFO.

Which measure reflects profitability from normal operations and a key performance measure for predicting the future profit-generating

Which measure reflects profitability from normal operations and a key performance measure for predicting the future profit-generating ability of a company?

A) Gross profit.

B) Operating income.

C) Income before income taxes.

D) Net income.

Answer: Operating income.

A company is most likely to utilize the specific identification method if its inventory consists of:

A) Unique products.

B) Very expensive products.

C) A relatively small number of products.

D) All of the other answers are reasons to utilize the specific identification method

Answer: All of the other answers are reasons to utilize the specific identification method

Operating income is calculated as net sales minus:

A) Utilities expense.

B) Salaries expense.

C) Cost of goods sold.

D) All of the other answers are subtracted from net sales to calculate operating income.

Answer: All of the other answers are subtracted from net sales to calculate operating income

A company has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and nonoperating expenses of $2,000

A company has net sales of $200,000, cost of goods sold of $120,000, selling expenses of $6,000, and nonoperating expenses of $2,000. What is the company's gross profit?

A) $76,000.

B) $80,000.

C) $74,000.

D) $72,000.

Answer: $80,000.

What amount will the company report for operating income?

A) $200,000.

B) $210,000.

C) $380,000.

D) $120,000.

Answer: $210,000.

Gross profit is calculated as net sales minus:

A) Nonoperating expenses and income tax expense.

B) Operating expenses.

C) Cost of goods sold.

D) All of the other answers are subtracted from net sales to calculate gross profit.

Answer: Cost of goods sold.

Given the information in the table below, what is the company's gross profit?

Sales revenue $ 350,000

Accounts receivable $ 280,000

Ending inventory $ 230,000

Cost of goods sold $ 180,000

Sales returns $ 50,000

Sales discounts $ 20,000

A) $280,000.

B) $170,000.

C) $50,000.

D) $100,000.

Answer: $100,000.

Which of the following items may be classified as nonoperating revenues and expenses?

A) Interest expense.

B) Loss on the sale of equipment.

C) Interest revenue.

D) All of the other answers are classified as nonoperating revenues and expenses.

Answer: All of the other answers are classified as nonoperating revenues and expenses.

The type of income statement that reports a series of subtotals such as gross profit, operating income, and income before taxes is a ________ income statement.

A) Single-step.

B) Subtotaled.

C) Multiple-step.

D) Classified.

Answer: Multiple-step.