# SAINT MBA560 MOD 2 TEST (100% ANSWER) - 88854

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Question1. Question : Baxter Company’s merchandise inventory at the start of 2010 was \$85,000. The company purchased inventory during 2010 in the amount of \$323,000, and its inventory at the end of the year was \$102,000.

What was Baxter’s Cost of Goods Sold for 2010?

\$391,000

\$306,000

\$408,000

\$289,000

Question 2. Question : The Red Valley Company maintains perpetual inventory records. Although its inventory records indicated \$18,000 in the inventory, a physical count showed only \$16,250. Which of the following answers indicates the effect of the necessary write-down?

Row Assets = Liab. + Equity Rev - Exp. = Net Inc. Cash

One (1,750) = NA + (1,750) NA - 1750 = (1,750) NA

Two NA = 1750 + (1,750) NA - 1750 = (1,750) NA

Three 16,250 = NA + 16,250 16,250 - NA = 16,250 16,250 IA

Four (18,000) = NA + (18,000) (18,000) - NA = (18,000) NA

Row One

Row Two

Row Three

Row Four

Question 3. Question : Product costs are also referred to as:

period costs.

operating expenses.

inventory costs.

Question 4. Question : Based on common size income statements, which of the companies A, B, C, or D spent, relative to sales, the most on operating expenses?

Company A B C D

Sales \$40,000 \$60,000 \$50,000 \$90,000

COGS 24,000 36,000 30,000 67,500

Gross Margin 16,000 24,000 20,000 22,500

Operating Expenses 4,800 5

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