Quiz 3 Mini Calculation Drill
Work each problem before opening the answer. Focus on setting up the relationship correctly before doing the arithmetic.
1 A retailer reports sales revenue of $185,000, sales returns and allowances of $7,000, and sales discounts of $3,000. What are net sales? Tap to reveal
Answer: $175,000
Net sales = Sales Revenue - Sales Returns and Allowances - Sales Discounts
$185,000 - $7,000 - $3,000 = $175,000
2 A company reports net sales of $240,000 and cost of goods sold of $156,000. What is gross profit? Tap to reveal
Answer: $84,000
Gross profit = Net Sales - Cost of Goods Sold
$240,000 - $156,000 = $84,000
3 A retailer reports gross profit of $96,000 and operating expenses of $61,000. What is operating income? Tap to reveal
Answer: $35,000
Operating income = Gross Profit - Operating Expenses
$96,000 - $61,000 = $35,000
4 Beginning inventory is $28,000 and purchases are $92,000. Ending inventory is $31,000. What is cost of goods sold? Tap to reveal
Answer: $89,000
Cost of goods available for sale:
$28,000 + $92,000 = $120,000
Then subtract ending inventory:
$120,000 - $31,000 = $89,000 COGS
5 A company has 100 units at $10, then purchases 80 units at $12. It sells 120 units. Using FIFO, what is cost of goods sold? Tap to reveal
Answer: $1,240
FIFO assigns the oldest costs to COGS first.
100 units × $10 = $1,000
20 units × $12 = $240
$1,000 + $240 = $1,240 COGS
The remaining 60 units at $12 stay in ending inventory.
6 A company has 100 units at $10, then purchases 80 units at $12. It sells 120 units. Using LIFO, what is cost of goods sold? Tap to reveal
Answer: $1,360
LIFO assigns the newest costs to COGS first.
80 units × $12 = $960
40 units × $10 = $400
$960 + $400 = $1,360 COGS
The remaining 60 units at $10 stay in ending inventory.
7 A company has 200 units available for sale with a total cost of $4,600. If 150 units are sold, what are COGS and ending inventory using weighted-average cost? Tap to reveal
Answer: COGS $3,450; Ending Inventory $1,150
First calculate weighted-average cost per unit:
$4,600 ÷ 200 units = $23 per unit
COGS:
150 × $23 = $3,450
Ending inventory:
50 × $23 = $1,150
Check: $3,450 + $1,150 = $4,600 total cost available.
8 Cost of goods sold is $420,000. Beginning inventory is $70,000 and ending inventory is $50,000. What are inventory turnover and days sales in inventory? Tap to reveal
Answer: Inventory turnover = 7.0 times; Days sales in inventory ≈ 52.1 days
First find average inventory:
($70,000 + $50,000) ÷ 2 = $60,000
Inventory turnover:
$420,000 ÷ $60,000 = 7.0 times
Days sales in inventory:
365 ÷ 7.0 = 52.1 days