the following is not considered in computing net cost of purchases? Purchases Purchase Returns and allowances Transportation paid on purchased of goods Transportation paid on goods shipped to c

Q: 29 - How are purchase refunds recorded to which account? A) From the purchase to the debt of the…

A: Purchase returns are always in a nature of returns made to the sellers and thus decreasing the…

Q: Under the specific identification method, gross profit is determined by

A: Answer:   Option B

Q: Which account balance is NOT used to compute the cost of goods sold? a.Merchandise Inventory…

A: Formula: Cost of goods sold = Beginning Merchandise inventory + Net Purchases - Ending Merchandise…

Q: Which of the following statements regarding the cost of transportation-in for the purchase of…

A: Cost of goods sold = Beginning inventory + Purchase of merchandise  + Transportation in - Ending…

Q: Which of the following account will be least likely involved in the purchasing sub-process of the…

A: Purchasing and Disbursement Cycle is the whole process which starts with purchase of inventory and…

Q: Which of the following should not be taken into account when determining the cost of inventory? a.…

A: Solution:- The following should not be taken into account when determining the cost of inventory as…

Q: Pre b. To determine sales revenue d. Inventory does not affect net income To determine cost of goods…

A: Since you have asked multiple questions, we will solve the first one for you. If you want any…

Q: Total goods available for sale is equal to  a. the sum of ending inventory and net purchases. b.…

A: Beginning inventory + Net purchases = Cost of goods sold + Ending inventory Total cost of goods…

Q: Cost of goods sold is computed from the following equation: beginning inventory - cost of goods…

A: Gross profit = Sales - Cost of goods sold  Sales = Cost of goods sold  + Gross profit  Cost of goods…

Q: Which two accounts are used to recognize shipping charges for a buyer, assuming the buyerpurchases…

A: The term "free on board" (FOB) relates to whether the vendor or customer is liable for damaged or…

Q: Discuss the treatment of freight-in, purchase returns, purchase discounts, normal spoilage, sales…

A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…

Q: Which of the following accounts is not closed to Income Summary? * O Cost of Goods Sold O…

A: The closing entries are prepared at year end to close the temporary accounts of the business.

Q: ith inflation, what are the implications of using LIFO and FIFO inventory methods? How do they…

A: FIFO: First in, first out (FIFO) is a method of asset management and valuation in which assets…

Q: The following accounts are included in the ledger of David Company: Advertising expense Freight-in…

A: Cost of goods sold = Beginning inventory + Net purchases + Direct expenses - Ending inventory

Q: 1. Which of the following accounts are used when recording the sales entry of a sale on credit?e A.…

A: Sales is a revenue account and all revenues increase when credited.  Accounts receivable is an Asset…

Q: Cost of goods available for sale is calculated by adding: A beginning inventory to net purchases and…

A: The cost of products available for sale is the cost of raw materials and labor used to make goods…

Q: For purposes of computing the MCIT, which will not form part of cost of goods sold for traders:…

A: MCIT is minimum corporate income tax, which is being payable by the domestic companies. The rate…

Q: of goods sold for the FIFO and the LIFO method based on the information

A: FIFO stands for First in first out . It means the inventory which is purchased first will be sold…

Q: How do calculate the Cost of Goods Sold without the beginning inventory nor the ending inventory??

A: Cost of goods sold is the total costs incurred on those units of goods or products which are sold by…

Q: When using the periodic inventory system, which of the following generally would not be separately…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: n perpetual method, _______________ will be credited if an item bought will be returned.    Cost of…

A: In perpetual method, Merchandise Inventory will be credited if an item bought will be returned. Cost…

Q: a) merchandise inventory,  b) accounts payable, c)   cost of goods sold,  d) customer refunds…

A:

Q: The retail inventory method would include which of the following in the calculation of the goods…

A: An accounting method which is being used for the purpose of measuring the merchandise in the store…

Q: Which of the following should not be taken into account when determining the cost of inventory? A.…

A: As per IAS 2,  Inventory Cost of Inventory  consists  of  1. Purchase cost 2.conversion cost 3.other…

Q: Which account does a merchandiser use that a service company does not use? Cost of Goods Sold…

A:

Q: What is the effect on the cost of goods sold, gross profit, and net income if ending merchandise…

A: Ending inventory is the value of inventory available on hand at the end of the accounting period.

Q: The failure to record a purchase of merchandise on account even though the goods are properly…

A: Error of Omission: It is an  error where  no entry  is being recorded even though  transactions  are…

Q: What are expenses like sales salaries expense, advertising expense, etc. called that are incurred…

A: Under the functional expense classification expenses are aggregated and reported by activities for…

Q: What type of expenses are deducted as a part of gross profit? A)"Cost of goods sold" only…

A: Gross profit can be calculated by deducting cost of goods sold from the net sales.

Q: The sum of ending inventory and cost of goods sold isa. net purchases.b. beginning inventory.c. cost…

A: Cost of goods sold is the cost price of the goods at which the goods are sold.

Q: What is the correct entry to write off the inventory under perpetual method? Dr. Cost of Goods sold…

A: The Perpetual Inventory System is a highly preferred system as it can produce accurate results…

Q: Which one the following types of cost is most likely to be included in determining the cost of…

A: Freight in cost is concerned with the inventory value and should be included in determining the cost…

Q: Normal balances of merchandise accountsWhat is the normal balance of the following accounts: (a)…

A: Merchandise business is that form of business in which seller purchases goods from some other person…

Q: Which of the following statements about FIFO is true? Select one: a. All of the statements are…

A: FIFO is the First-in and First-out method of valuation of Inventory. Under this method, it is…

Q: inventory is added to Total Goods Available for Sale when computing for Cost of Goods Sold. True F

A: Solution: False. The statement that Ending inventory is added to Total Goods Available for Sale when…

Q: 1. Which one of the following types of costs is most likely to be included in determining the cost…

A: Answer to the first question: The type of cost that is directly related to the cost of inventory is…

Q: Which of the following is used to determine the cost of goods sold? a. Beginning Inventory +…

A: Net Purchases = Purchases - Purchase return - Purchase discount Direct Expenses = Freight in etc.

Q: What is the treatment of the following items in connection with the retail inventory method? d.…

A: A retail business is one that buys goods in bulk from the wholesaler and sells them in smaller…

Q: Which of the following is not a step in the retail inventory method process? a.Compute the cost of…

A: The question is based on the concept of Cost Accounting.

Q: The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase…

A: Purchase refers to a transaction that results in an acquisition of an item. This transaction…

Q: Cost of goods sold: Multiple Choice Is another term for merchandise sales. Is the term used for the…

A: The question is based on the concept of Accounting theory.

Q: Cost of goods sold is given by:

A: Cost of goods sold:   Cost of goods sold is the total of all the expenses incurred by a company to…

Q: Purchases of inventory minus purchase discounts and minus purchase returns and allowances equals: a.…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…