ACC 231 Study Guide - Perpetual Inventory, Gross Profit, Trial Balance
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1. Purchases, $96â; Grossâ Sales, $176â; Sales Returns andâAllowances, $15â; Salesâ Discounts, $24â; Operatingâ Expenses,$55â; Netâ Sales, $137â; âFreight-In, $9â; Beginningâ Inventory,$18â; EndingâInventory, $8â; Netâ Purchases, $62â; Cost of GoodsâSold, $ 81
a. The gross profit is __
â(Use parentheses or a minus sign to show a netâ loss.)
b. The net income or net loss is __
2.
âJack's Online Service on April 30 has the following accountâbalances:
Sales | $27,000 | |
Sales Returns and Allowances | $10,000 | |
Purchases | $16,000 | |
FreightminusâIn | $1,700 | |
Purchase Returns and Allow. | $2,200 | |
Purchases Discounts | $1,400 |
Net purchases for the periodâ are:
3. The entry to record a payment on a $660 account within the3â% discount period would includeâ a: (Round your calculation tothe nearest wholeâ dollar.)
A. debit to Cash for $660.
B. debit to Accounts Payable for $640.
C. debit to Accounts Payable for $660.
D. credit to Purchases for $640.
1.) When products held in inventory are sold:
A.)Cost of Goods Sold is credited.
B.)Work in Process Inventory is credited.
C.)Finished Goods Inventory is credited.
D.)Finished Goods Inventory is debited.
2.)Since manufacturing costs (direct materials, direct labor,and overhead) are incurred in the process of manufacturing units ofproduct, these costs are credited t
| A.) | The Direct Materials Inventory, Direct Labor, and ManufacturingOverhead accounts respectively. |
| B.) | Liability accounts. |
| C.) | The Work in Process Inventory account. |
| D.) | The Cost of Goods Sold account. |
3.)Management accounting systems are designed to assistorganizations in the performance of all of the following functionsexcept:
| A.) | The assignment of decision-making authority over companyassets. |
| B.) | Planning and decision-making. |
| C.) | Monitoring, evaluating, and rewarding performance. |
| D.) | The preparation of income tax returns. |
4.)In a schedule of cost of finished goods manufactured, thefigure for total manufacturing costs:
| A.) May be less than the cost of direct materials used. | |
| B.) May be less than the direct labor costs assigned toproduction. | |
| C.) May be less than the manufacturing overhead applied toproduction. | |
| D.) May be less than the cost of finished goodsmanufactured. |
5.) When a manufacturing company purchases raw materials orcomponent parts to be used in manufacturing finished goods, thesecosts are initially debited to:
| A.) Expense accounts. | |
| B.) Raw Materials Inventory. | |
| C.) Finished Goods Inventory. | |
| D.) Manufacturing Overhead. |
6.) The wages paid to employees working directly on a company'sproducts would be shown as a:
| A.) Credit to Direct Labor. | |
| B.) Debit to Direct Labor. | |
| C.) Credit to Work in Process. | |
| D.) Debit to Manufacturing Overhead. |
7.) Amounts credited to the Work in Process inventory accountmay best be described as:
| A.) The cost of finished goods manufactured. | |
| B.) Total manufacturing costs charged to production. | |
| C.) The cost of goods sold. | |
| D.) Direct materials purchased, direct labor costs paid, andpayments for items classified as manufacturing overhead. |
