POST TEST -CHAPTER 2-CAE08
[Link] Inc. is a merchandising company. Last month the company's merchandise
purchases totaled $87,000. The company's beginning merchandise inventory was
$19,000 and its ending merchandise inventory was $11,000. What was the company's
cost of goods sold for the month?
Ans. 95,000
Solution:
Merchandise Inventory, beg. 19,000
Add: Merchandise purchase 87,000
Goods available for sale 106,000
Less: Finished goods inventory, end. 11,000
Cost of good sold 95,000
2. At the beginning of the most recent month's operations, finished goods inventory
was $30,000. The cost of goods manufactured was $326,000 and ending finished
goods inventory was $42,000. What was the cost of goods sold for the month?
Ans. 314,000
Solution:
Finished goods inventory, beg. 30,000
Add: Cost of goods manufactured 326,000
Goods available for sale 356,000
Less: Finished goods inventory, end. 42,000
Cost of goods sold 314,000
3. Haala Inc. is a merchandising company. Last month the company's cost of goods
sold was $68,000. The company's beginning merchandise inventory was $11,000 and
its ending merchandise inventory was $17,000. What was the total amount of the
company's merchandise purchases for the month?
Ans. 74,000
Solution:
Merchandise inventory, beg. 11,000
Add: Merchandise manufactured ?
Goods available for sale ?
Less: Merchandise inventory, end. 17,000
Cost of goods sold 68,000
Goods available for sale = Cost of goods sold + Merchandise inventory end.
Goods available for sale = 68,000 + 17,000
Goods available for sale = 85,000
Merchandise purchased = goods available for sale – merchandise inventory beg.
Merchandise purchased = 85,000 – 11,000
Merchandise purchased = 74,000
4. During July, the cost of goods manufactured at Xxis Corporation was $70,000. The
beginning finished goods inventory was $19,000 and the ending finished goods
inventory was $15,000. What was the cost of goods sold for the month?
Ans. 74,000
Solution:
Finished goods inventory, beg. 19,000
Add: Cost of goods manufactured 70,000
Goods available for sale 89,000
Less: Finished goods inventory, end. 15,000
Cost of goods sold 74,000
5. What was Toule's cost of goods sold for October?
Ans. 869,000
Solution:
Beginning finished goods inventory + cost of goods manufactured – Ending finished goods
inventory = Cost of goods sold
Rearranging:
Cost of goods manufactured + (Beginning finished goods inventory – Ending finished goods
inventory) = Cost of goods sold
907,000 + (-38,000)* = Cost of goods sold
869,000 = Cost of goods sold