Scribd Logo
Upload

Welcome to Scribd!

  • 17 views

    Theories: Date Receipts Issuances Balances

    Uploaded by

    RicaRhayaMangahas
    This document contains 12 multiple choice questions testing knowledge of accounting theories and concepts related to merchandising operations, inventory valuation methods, and calculating financial metrics like cost of goods sold and gross margin using different inventory methods. The questions cover topics like identifying inventoriable costs, differences between perpetual and periodic inventory systems, inventory valuation under FIFO, moving average and weighted average methods, and calculating costs, revenues and profits for a merchandising company using inventory data.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Theories: Date Receipts Issuances Balances

    Uploaded by

    RicaRhayaMangahas
    17 views2 pages
    This document contains 12 multiple choice questions testing knowledge of accounting theories and concepts related to merchandising operations, inventory valuation methods, and calculating financial metrics like cost of goods sold and gross margin using different inventory methods. The questions cover topics like identifying inventoriable costs, differences between perpetual and periodic inventory systems, inventory valuation under FIFO, moving average and weighted average methods, and calculating costs, revenues and profits for a merchandising company using inventory data.

    Original Title

    BSA-SM-1-1-SET-B

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains 12 multiple choice questions testing knowledge of accounting theories and concepts related to merchandising operations, inventory valuation methods, and calculating financial metrics like cost of goods sold and gross margin using different inventory methods. The questions cover topics like identifying inventoriable costs, differences between perpetual and periodic inventory systems, inventory valuation under FIFO, moving average and weighted average methods, and calculating costs, revenues and profits for a merchandising company using inventory data.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views2 pages

    Theories: Date Receipts Issuances Balances

    Uploaded by

    RicaRhayaMangahas
    This document contains 12 multiple choice questions testing knowledge of accounting theories and concepts related to merchandising operations, inventory valuation methods, and calculating financial metrics like cost of goods sold and gross margin using different inventory methods. The questions cover topics like identifying inventoriable costs, differences between perpetual and periodic inventory systems, inventory valuation under FIFO, moving average and weighted average methods, and calculating costs, revenues and profits for a merchandising company using inventory data.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    THEORIES

    1. Which of the following statements is true with respect to merchandising operations?


    a. Freight-in and freight-out are inventoriable costs.
    b. Perpetual inventory system is best for sole proprietorship business.
    c. The operating cycle of a merchandising company includes the purchase of raw materials.
    d. In a periodic inventory system, there is no way to determine the cost of goods sold every time a sale
    is made except at the end of the period.

    2. Which of the following is not true about inventory valuation methods?


    a. Under FIFO method, raw materials inventory is reported at latest cost.
    b. In a period of declining prices, FIFO method will yield a higher profit because cost of goods sold is
    assigned at lower cost.
    c. Under moving average method, average unit cost changes every time raw materials are acquired.
    d. Cost of goods sold is reported at earliest cost under FIFO method.

    3. Merchandise inventory at the end is understated because goods in the hands of the consignee are not
    included in the physical count. What is the effect of this error in the gross margin?
    a. Understated c. No effect
    b. Overstated d. Cannot be determined

    PROBLEMS
    4. RADWIMPS Company uses a periodic inventory system. RADWIMPS purchased cattle from LiSA Ranch
    at a cost of P 27,000.00 on credit. The entry to record the receipt of the cattle would be
    a. Debit: Purchases (27,000) ; Credit: Accounts Payable (27,000)
    b. Debit: Inventory (27,000) ; Credit: Accounts Payable (27,000)
    c. Debit: Purchases (27,000) ; Credit: Cash (27,000)
    d. Debit: Inventory (27,000) ; Credit: Cash (27,000)

    5. The following transactions are found in the books of Kenshi Yonezu Merchandising:
    Beginning Balance 241 units @ 12.00 = P 2,892.00
    March 6 123 units @ 13.00 = P 1,599.00
    July 5 105 units @ 14.00 = P 1,470.00
    November 15 234 units @ 14.50 = P 3,393.00
    December 7 85 units @ 15.00 = P 1,275.00

    Inventory on hand as of December 31 totals to 108 units

    Using the FIFO method, the merchandise inventory on December 31 would be


    a. P 1,296.00 c. P 1,608.50
    b. P 1,456.92 d. None of the above

    6. Below is the Inventory Stock Card maintained by KANA-BOON Corp for its product for the month of
    June 2016:
    DATE RECEIPTS ISSUANCES BALANCES
    JUNE UNITS UC AMOUNT UNITS UC AMOUNT UNITS UC AMOUNT
    1 800 38.00 30,400.00
    3 1200 40.00
    4 1500
    10 800 42.00
    15 700
    15 1500 41.00
    15 1600
    26 800 40.00
    27 550

    Page | 1
    30 600 43.00

    Using the FIFO method, the ending inventory amounts to


    a. P 25,800.00 c. P 55,800.00
    b. P 23,650.00 d. None of these

    7. Using the above information, the total cost of products issued on June 15, using the moving average
    method, amounts to
    a. P 94,212.00 c. P 28,644.00
    b. P 65,568.00 d. P 175,221.00

    8. KOBASOLO Company, a merchandising entity engaged in the selling of appliances to customers, has made
    the following purchases and sales during the month of January 2015.
    January 1 Inventory at the beginning of the month: 24 units at P 1,000.00 per unit
    January 4 Sales: 16 units
    January 7 Purchases: 12 units at P 1,020.00 per unit
    January 10 Purchases: 10 units at P 1,050.00 per unit
    January 14 Sales: 16 units
    January 23 Sales: 12 units
    January 24 Purchases: 12 units at P 1,060.00 per unit
    January 27 Purchases: 4 units at P 1,080.00 per unit
    January 29 Sales: 6 units

    All sales have been made at P 1,600.00 per unit.

    Using the moving average method, the cost of goods available for sale for the month of January amounts to
    a. P 39,780.00 c. P 99,200.00
    b. P 63,780.00 d. None of the above

    9. Using the same information given in No. 21, the cost of goods sold for the month of January, using the
    weighted average method, amounts to
    a. P 50,980.00 c. P 51,435.48
    b. P 51,053.78 d. None of the above

    10. Using the same information given in No. 21, the total sales revenue for the month of January, using the
    FIFO method, amounts to
    a. P 63,780.00 c. P 99,200.00
    b. P 80,000.00 d. None of the above

    11. Using the same information given in No. 21, the company’s gross margin for the month of January, using
    the moving average method, amounts to
    a. P 47,764.22 c. P 48,220.00
    b. P 48,146.22 d. None of the above

    12. Ayon sa BFRS 5 (Bajang Future Relationship Standard), bakit nadidiscontinue ang relationship?
    (/N. Bergonia)
    a. Cheating. Mas madali nang lumandi ngayon dahil sa social media.
    b. Falling out of love. Kung wala na talagang feelings, the end na!
    c. Lying. Paano mo pagkakatiwalaan kung laging nagsisinungaling.
    d. Constant Fighting. Ang aso at pusa nag-cease fire na, kayo bakbakan pa rin ng bakbakan.
    e. Change of Priorities. Tsaka na lovelife, #RoadToPRC2022 at career muna!

    *** END OF EXAMINATION ***

    Page | 2

    You might also like