UlraCompanyhassalesrevenueof$88,000,salesreturnsandallowancesof$1,000,andsalesdiscountsof$1,500.Ulra'snetsalesare:
A. $85,500.
B. $86,500.
C. $87,000.
D. $90,500.
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Acompanypurchased400unitsat$75perunit.Thecompanysold385units.Whatisthecostofgoodssoldandendinginventory?
A. $10,000and$9,625.
B. $40,000and$28,875.
C. $28,875and$1,125.
D. $28,875and$10,000.
Thecostofinventoryisthe:
A. purchaseprice.
B. sumofallthecostsincurredtobringtheinventorytoitsintendeduse.
C. sumofallthecostsincurredtobringtheinventorytoitsintendeduse,plusanydiscountsandallowances.
D. sumofallthecostsincurredtobringtheinventorytoitsintendeduse,lessanydiscountsandallowances.
ABC Auto Sales sells new Lexus vehicles. ABC will most likely use the ________ method to cost its ending inventory.
A. Last-in,first-out
B. Specific-unit-cost
C. Weighted-average
D. First-in,first-out
Thespecific-unit-costmethod:
A. willproducethehighestnetincome.
B. isalsoknownasthespecificidentificationmethod.
C. willproducethesameendinginventoryastheaveragecostmethod.
D. isalsoknownasthecost-of-goodssoldmodel.
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