6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the delivery of sold goods b. Transportation cost paid for sales returned by a customer c. Transportation cost for a purchased merchandise not yet to a freight company d. Transportation cost for sales and purchases whether paid ar yet paid 7. These are cash inflows or outflows related to the generation of net income or related to changes on current assets and cum liabilities. a. Cash flows from operating activities b. Cash flows from investing activities c. Cash flows from financing activities d. Cash flows from marketing activities

6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the delivery of sold goods b. Transportation cost paid for sales returned by a customer c. Transportation cost for a purchased merchandise not yet to a freight company d. Transportation cost for sales and purchases whether paid ar yet paid 7. These are cash inflows or outflows related to the generation of net income or related to changes on current assets and cum liabilities. a. Cash flows from operating activities b. Cash flows from investing activities c. Cash flows from financing activities d. Cash flows from marketing activities

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 40E: Identify items missing in determining cost of goods sold For (a) through (e), identify the items...

See similar textbooks

Similar questions

What does an increase in inventory imply? How would this increase in inventory be reported under the indirect method?
LO2 Under the perpetual system of accounting for inventory, the current merchandise inventory and the cost of goods sold are not determined until the end of the accounting period when a physical inventory is taken.
Consider each of the following independent situations. Should a company report the goods in its inventory? (a) Goods purchased by the company with shipping terms FOB shipping point that are in transit at the end of the year (b) Goods received by the company on consignment (c) An estimate of the amount of goods sold by the company that it expects the buyer to return (d) Goods required to be purchased by the company under an unconditional purchase obligation
Under the retail inventory method, freight-in would be included in the calculation of the goods available for sale for which of the following?
Which of the following accounts are used when recording a purchase using a periodic inventory system? A. cash, purchases B. accounts payable, sales C. accounts payable, accounts receivable D. cash, merchandise inventory
Which of the following is not an element of the financial statements? A. future potential sales price of inventory B. assets C. liabilities D. equity
In the income statement, Freight-In is (a) added to purchases. (b) subtracted from purchases. (c) added to sales. (d) subtracted from cost of goods.
Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
The difference between merchandise available for sale and the end-of-period merchandise inventory is called (a) gross profit. (b) net purchases. (c) net sales. (d) cost of goods sold.
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Explain why a company might want to utilize the gross profit method or the retail inventory method for inventory valuation.