Challenge Tennis & Recreation's operating activities for the year are listed below.

161) A merchandiser's purchases are equivalent to a manufacturer's
A) cost of goods sold.
B) cost of goods manufactured.
C) raw materials inventory.
D) work in process inventory.
Answer:  B
Diff: 2
LO:  2-5
EOC:  E2-25A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

162) Tuity Fruity Beverage Company's operating activities for the year are listed below.

Purchases    $140,000
Operating expenses    80,000
Beginning inventory     12,000
Ending inventory     18,000
Sales revenue     300,000

What is the cost of goods available for sale?
A) $140,000
B) $152,000
C) $80,000
D) $134,000
Answer:  B
Explanation:  B) Calculations: Beginning Inventory $ 12,000 + Purchases 140,000 = Goods Available $152,000
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

163) Tuity Fruity Beverage Company's operating activities for the year are listed below.

Purchases    $140,000
Operating expenses    80,000
Beginning inventory     12,000
Ending inventory     18,000
Sales revenue     300,000

What is the cost of goods sold for the year?
A) $152,000
B) $134,000
C) $140,000
D) $80,000
Answer:  B
Explanation:  B) Calculations: Beginning Inventory $ 12,000 + Purchases 140,000 = Goods Available
$ 152,000 - Ending Inventory 18,000 = 134,000
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

164) Tuity Fruity Beverage Company's operating activities for the year are listed below.

Purchases    $140,000
Operating expenses    80,000
Beginning inventory     12,000
Ending inventory     18,000
Sales revenue     300,000

What is the gross profit for the year?
A) $160,000
B) $300,000
C) $80,000
D) $166,000
Answer:  D
Explanation:  D) Calculations: Beg Inv $ 12,000 + Purchases 140,000 = Goods available 152,000 - ending inventory 18,000 = Cost of Goods Sold $134,000. Now Sales 300,000 - CGS 134,000 = Gross Profit $ 166,000
Diff: 3
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

165) Chicago Steel's operating activities for the year are listed below.

Beginning inventory      $ 1,000,000
Ending inventory     $    350,000
Purchases     $    750,000
Sales revenue      $ 1,500,000
Operating expenses     $    700,000

What is the cost of goods available for sale?
A) $1,400,000
B) $750,000
C) $50,000
D) $1,750,000
Answer:  D
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

166) Chicago Steel's operating activities for the year are listed below.

Beginning inventory      $ 1,000,000
Ending inventory     $    350,000
Purchases     $    750,000
Sales revenue      $ 1,500,000
Operating expenses     $    700,000

What is the cost of goods sold for the year?
A) $1,400,000
B) $750,000
C) $50,000
D) $1,750,000
Answer:  A
Explanation:  A) Calculations: Beginning Inventory $ 1,000,000 + Purchases 750,000 = Goods Available $1,750,000 - Ending Inventory 350,000 = 1,400,000
Diff: 2
LO:  2-5
EOC:  E2-27A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

167) Chicago Steel's operating activities for the year are listed below.

Beginning inventory      $ 1,000,000
Ending inventory     $    350,000
Purchases     $    750,000
Sales revenue      $ 1,500,000
Operating expenses     $    700,000

What is the gross profit for the year?
A) $50,000
B) $750,000
C) $1,500,000
D) $100,000
Answer:  D
Explanation:  D) Calculations: Beginning Inventory $ 1,000,000 + Purchases 750,000 = Goods Available $1,750,000 - Ending Inventory 350,000 = CGS 1,400,000. Now Sales 1,500,000 - CGS 1,400,000 = Gross Profit $100,000
Diff: 3
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

168) Challenge Tennis & Recreation's operating activities for the year are listed below.

Purchases    $174,000
Operating expenses    62,000
Beginning inventory     27,000
Ending inventory     37,000
Sales revenue     333,000

What is the cost of goods available for sale?
A) $164,000
B) $201,000
C) $97,000
D) $174,000
Answer:  B
Explanation:  B) Calculations: $ 27,000 + 174,000 = $201,000
Diff: 2
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

169) Challenge Tennis & Recreation's operating activities for the year are listed below.

Purchases    $174,000
Operating expenses    62,000
Beginning inventory     27,000
Ending inventory     37,000
Sales revenue     333,000

What is the cost of goods sold for the year?
A) $201,000
B) $164,000
C) $174,000
D) $97,000
Answer:  B
Explanation:  B) Calculations: $ 27,000 + 174,000 = 201,000 - 37,000 = $164,000
Diff: 2
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

170) Challenge Tennis & Recreation's operating activities for the year are listed below.

Purchases    $174,000
Operating expenses    62,000
Beginning inventory     27,000
Ending inventory     37,000
Sales revenue     333,000

What is the gross profit for the year?
A) $159,000
B) $333,000
C) $97,000
D) $169,000
Answer:  D
Explanation:  D) Calculations: $ 27,000 + 174,000 = 201,000 - 37,000 = $164,000. Then $ 333,000 - 164,000 = $ 169,000
Diff: 3
LO:  2-5
EOC:  E2-26A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits