Question # 1
Complete and submit Exercise 6.12 on pp. 277 in the text.
Complete the Exercise using Excel or sample template.
The response to this question must be submitted as a file attachment.
All parts of the question must be clearly identified and all supporting calculations must be included.
Cost of Merchandise Purchased equals $50,000
Question # 2
Complete and submit Problem 6.2A on 279 in the text.
use the template provided on the student website to submit your work. You will need to save this file to your own PC and than attach your file below using the Create an Assignment icon. Please review the Angel instructions for submitting assignments as file attachments if you need additional clarification. Click here to access the template for this problem. Please note: the excel template states the problem as 6-2 instead of 6-2a
All supporting calculations must be shown.
Responses to Parts C, D, E, F must be in complete sentences.
When typing responses to Parts C, D, E, F, you must remain in the yellow area of the template. You must manually go to the next line when you get to the end of a line. It does not act like a word processor with word wrap. If you do not stay in the yellow area, I cannot read what you write.
Check Figures for Problem 6.2
Problem 6.2A – Net Income equals $12,000
1 Which of the following businesses is most likely to use a periodic inventory system?
A. An independently owned art gallery with a manual accounting system.
B. An aircraft manufacturer.
C. A supermarket that is part of a national chain.
D. A beer bar.
2 A periodic inventory system eliminates the need for:
A. Recording the cost of merchandise sold as sales occur.
B. Taking an annual physical inventory.
C. Recording the revenue from sales transactions.
D. None of the above.
3 If management wants to know the cost and quantity of merchandise on hand at all times, the business will probably:
A. Take a complete physical inventory each day.
B. Use a periodic inventory system.
C. Maintain an inventory subsidiary ledger.
D. Debit all purchases of merchandise directly to the Cost of Goods Sold account.
4 In a perpetual inventory system, the entry to record the cost of goods sold always includes an entry of equal amount to the:
A. Purchases account.
B. Inventory account.
C. None of the above.
D. Sales account.
5 Prior to taking a physical inventory at year-end, the perpetual inventory records of Fancy Designs showed an inventory of $35,000, sales of $375,000, and a cost of goods sold of $235,000. The year-end physical inventory indicated merchandise on hand costing $33,000. The company’s gross profit for the year was:
D. Some other amount