Which of the following is calculated before operating income can be determined for a manuf

Which of the following is calculated before operating income can be determined for a manuf

Which of the following is calculated before operating income can be determined for a manufacturer?

A) Cost of goods available for sale

B) Cost of goods manufactured

C) Cost of goods sold

D) All of the above

7) The only difference in the balance sheets of various types of businesses (for example, manufacturing vs. service) is:

A) current assets.

B) current liabilities.

C) investments.

D) equity.

8) Which of the following would be on the balance sheet of a service company?

A) Factory equipment depreciation

B) Cost of goods manufactured

C) Cost of goods sold

D) Accounts receivable

9) Which of the following would be on the income statement of a retailer?

A) Value of inventory

B) Cost of goods sold

C) Accounts payable

D) Accounts receivable

10) Which of the following costs would appear on the income statements for both a merchandiser and manufacturer?

A) Cost of goods manufactured

B) Direct labor incurred

C) Direct materials used

D) Operating expenses

11) A merchandiser's purchases are equivalent to a manufacturer's:

A) cost of goods manufactured.

B) cost of goods sold.

C) raw materials inventory.

D) work in process inventory.

12) Olde Tyme Beverage Company's operating activities for the year are listed below.

Purchases	$132,000
Operating expenses	80,000
Beginning Inventory	12,000
Ending inventory	16,000
Sales revenue	275,000

What is the cost of goods available for sale?

A) $128,000

B) $132,000

C) $63,000

D) $144,000

13) Olde Tyme Beverage Company's operating activities for the year are listed below.

Purchases	$132,000
Operating expenses	80,000
Beginning Inventory	12,000
Ending inventory	16,000
Sales revenue	275,000

What is the cost of goods sold for the year?

A) $144,000

B) $132,000

C) $128,000

D) $63,000

14) Olde Tyme Beverage Company's operating activities for the year are listed below.

Purchases	$126,000
Operating expenses	90,000
Beginning Inventory	14,000
Ending inventory	10,000
Sales revenue	250,000

What is the gross profit for the year?

A) $120,000

B) $143,000

C) $63,000

D) $275,000

15) Towpath Tennis & Recreation's operating activities for the year are listed below

Purchases	$150,000
Operating expenses	62,000
Beginning Inventory	27,000
Ending inventory	32,000
Sales revenue	302,000

What is the cost of goods available for sale?

A) $145,000

B) $150,000

C) $90,000

D) $177,000