1. A company had expenses other than cost of goods sold of $262,000. Determine sales and gross profit given cost of goods sold was $106,000 and net income was $162,000.
3.A company has sales of $1,570,000, sales discounts of $109,000, sales returns and allowances of $130,000, shipping charges of $22,000, sales commissions of $41,000, net income totaled $270,500, and cost of goods sold of $427,000. What is the net sales amount for the period?
4. Acme-Jones Corporation uses a LIFO perpetual inventory system.
August 2, 25 units were purchased at $12 per unit.
August 5, 10 units were purchased at $13 per unit.
August 15, 12 units were sold at $25 per unit.
August 18, 15 units were purchased at $14 per unit.
What was the amount of the cost of goods sold?
5. Managers are able to make important decisions correctly using erroneous inventory balances because inventory errors are self-correcting and, as a result, are less serious. True or False?
6. In a perpetual inventory system, the merchandise inventory account reflects the cost of goods available for sale. True or False?