Question

Matching astructions: Match each term with its description Record your final answer on the space provided below. A. Raw materials B. Merchandise inventory C. Service companies E. Work-in-process inventory F. Finished goods G. Manufacturing companies Inventory items for which the manufacturing process is complete. been used in production cost of components that will become part of the finished product but have not yet than selling inventory. Companies that generate revenues by providing services to their customers rather Companies that produce the inventories they sell rather than buying them from suppliers in finished form Products that have started the production process but are not yet complete at the end of the period Inventory that has been purchased in its finished form but has not yet been sold to customers. Instructions: Match each term with its description. Record your final answer on the space provided below. A. Sales returns B. Net revenues C. Trade discounts D. Contra revenues E. Sales discounts F. Sales allowances Total revenues less contra revenues. Reduction in revenue because the product or service is sold below the listed price. Reduction in revenue because the customer brings back products to the company after the original purchase. Reduction in revenue because of some deficiency in the company's good or service. Reduction in revenue when the customer pays within a specified period. Accounts with balances opposite of revenue. Page 8

Answer 1

A C Matching 1 Section 2 Finished Goods Inventory itmens for whch the manufacturing process it complete Raw Materials Cost of components that will become part of the finished product but have not 1 2 yet been in production 5 Service companies that generate revenues by providing services to their customers rather than selling inventory 6 3 7 Manufacturing companies that produce the inventories they sell rather than buying them from 4 8 suppliers in finished form k-in-process invei produces that have started the production process but are not yet complete at 5 10 the end of the period inventory that has been purchased in its finished form but has not yet been sold 11 Merchandise 12 6 13 to customers 14 Section 2 15 Net revenue Total revenues less contra revenues Trade discounts reduction in revenue because the product or service is sold below the listed price Sales returns reduction in revenue because the customer brings back products to the company 16 1 2 17 3 18 after the original purchase 19 Sales allowances reduction in revenue becuse of some deficiency in the company's good or service Sales discounts reduction in revenue when the customer pays within a specified period 20 4 5 21 Contra revenue accounts with balances opposite of revemue 6 22 23 n st

E F G H Short Problem 1 2 Lennon Harrison McCartny Company Starr 3 4 Sales $8,000 $9,000 $8,000 $7,000 Less: Cost of Goods Sold $3,000 $3,000 $2,000 5 $4,000 6 Gross Profit $4,000 $5,000 $5,000 $6,000 7 Less: Operating Expenses 8 Net Income $3,000 $2,000 $3,000 $3,000 $1,000 $4,000 $2,000 $2,000 10 Lennon Harrison McCartny Starr $7,000 $2,000 Company 11 12 Sales $8,000 $9,000 $8,000 13 Less: Cost of Goods Sold $3,000 $3,000 -F4-F6 14 Gross Profit $4,000 G4-G5 $5,000 $5,000 15 Less: Operating Expenses $3,000 $2,000 H6-HS $3,000 16 Net Income $1,000 $4,000 $2,000 16-17 17 19 t an

K M Short Problem 1 1 Journal Entries 2 Debit (S) Credit (S) $9,000 Date Account Titles 2-Nov Inventory 4 Accounts Payable $9,000 5 (To record the inventory purchased) 6 11-Nov Accounts Payable $9,000 7 Sales Discounts $270 8 Cash $8,730 (To record the cash paid to suppliers) 10 16-Nov Cash $14,000 11 Sales Revenue $14,000 12 (To record the sales revenue) 13 16-Nov Cost of Goods Sold $7,760 14 $7,760 15 Inventory (To record the cost of goods sold) 16 17 et LO

R S T U V W FIFO 1 Total Cost Cost of Goods Sold Ending Inventory Transactions Units Date Cost 2 1-Jan Beg. Inventory 9-Apr Purchase 4-Oct Purchase Total $430 $4,300 $4,300 $0 10 $470 $10,340 $10,340 $0 22 4 $400 $7,200 $21,840 $4,800 $19,440 $2,400 $2,400 5 18 $1,300 6 50 7 No. of Units Sold 44 LIFO 10 Total Cost Cost of Goods Sold Units Transactions Ending Inventory $2,580 $0 Date Cost 11 1-Jan Beg. Inventory 9-Apr Purchase Purchase Total $430 $4,300 $1,720 10 12 $470 $10,340 $7,200 $21,840 $10,340 13 22 $400 $7,200 $0 14 4-Oct 18 $1,300 $19,260 $2,580 15 50 16 LO CO

R T U W FIFO 1 Ending Inventory Transactions Units Total Cost Cost of Goods Sold Date Cost 2 3 43466 Beg. Inventory 4 43564 Purchase 5 43742 Purchase Total -S3*T3 - S4*T4 -S5*T5 -U3 -U4 10 430 470 22 18 -(44-10-22) T5 SUM(V3:V5) -U5-V5 400 -SUM(S3S5) |=SUM(T3:T5) -SUM(U3:US) |=SUM(W3:W5) 6 7 No. of Units Sold 44 8 LIFO 10 Transactions Units Total Cost Cost of Goods Sold Ending Inventory -U12-V12 Date Cost 11 (44-18-22) T12 -U13 12 43466 Beg. Inventory 13 43564 Purchase 14 43742 Purchase 430 -S12*T12 -S13 *T13 -S14*T14 10 470 22 -U14 18 400 0 Total |-SUM(S12:S14)-SUM(T12T14) -SUM(U12U14)SUM(V12:V14) -SUM(W12:W14) 15 16 > Co

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