Name Date Period
These prototype assessment items illustrate the types of items used in the item bank for this objective. All items have been written to match the cognitive process of the apply verb in the objective. These exact questions will not be used on the secure postassessment, but questions in similar formats will be used.
Calculate Cost of Goods Sold
1. The Better Bat Company would like to know its cost of goods sold amount for the past month. Per the general ledger, sales is equal to $975,500, beginning inventory is equal to $605,500; net purchases are equal to $340,000, and estimated ending inventory has been calculated to be $445,000. Determine Better Bat Company’s cost of goods sold.
A. $610.500
B. $475,000
C. $500,500
D. $265,000
Answer:
Calculate Gross Profit
2. The Johnston Company would like to determine its gross profit for the past quarter.
Per the general ledger, sales is equal to $905,000, beginning inventory is equal to
$300,000, net purchases is equal to $150,000 and estimated ending inventory has been calculated to be $55,000. Determine the Johnston Company’s gross profit.
A. $510,000
B. $350,500
C. $400,000
D. $810,000
Answer:

Name Date
Calculate Estimated Inventory – Gross Profit Method
3. The Thomas Toy Company needs to estimate ending inventory for its interim financial statements. The following information is available: sales $750,000; beginning inventory $300,250, net purchases $167.500, gross profit 43%.
Determine estimated ending inventory using the Gross Profit Method.
A. $40,250
B. $145,250
C. $322,500
D. $467,750
Correct Answer
Calculate Estimated Inventory – Retail Method
4. The Bead Boutique Company needs to estimate ending inventory for its interim financial statements. The following information is available:

Beginning inventory at cost $56,500; at retail $85,000

Net purchases at cost $38,000; at retail $65,000

Retail sales to date $130,500
Estimate the ending inventory using the Retail Method.
A. $55,500
B. $27,500
C. $19,500
D. $12,285
Answer:
Period

Name Date Period
Prepare a Statement of Gross Profit with Component Percentages
The Schuler Company
Figure 3.02-A
Interim Departmental Statement of Gross Profit
For Month Ended June 30, 20xx
Clothing
% of Net
Sales
Housewares
% of Net
Sales
Operating Revenue:
Net Sales
Cost of Merchandise Sold
Est Mdse. Inv. September 1
Net Purchases
Mdse. Available for Sale
Less Est. End Inv September 30
Cost of Merchandise Sold
$ 30,500.00
17,500.00
25,500.00
$ 70,500.00
$ 46,000.00
22,500.00
38,500.00
$ 65,500.00
$ 76,500.00
$ 40,000.00
$ -
$ 64,000.00
Total
$ 136,000.00
Gross Profit on Operations $ -
5. The Schuler Company is preparing a Statement of Gross Profit with Component
Percentages. Using the information in Figure 3.02-A , what would the Gross Profit on Operations for the Clothing Division be?
A. $32,500
B. $48,000
C. $27,500
D. $35,500
Answer:
Prepare a Departmentalized Worksheet
6. Good Clothing store has two divisions, the Junior’s Department and the Children’s
Department. Amelia Accountant is preparing interim reports for the company and is currently working on completing the worksheet. She has started the worksheet by creating the heading and completing the Trial Balance section and Adjustments section. All columns balance to this point. What is the next step that Amelia should do to properly complete the Departmental Worksheet?
A. Calculate net income
B. Total and calculate departmental margin
C. Extend the assets, liabilities, and equity, plus or minus adjustments, to the
Balance Sheet columns
D. Extend the income, revenue, cost and direct expenses to the appropriate departmental columns.
Answer:

Name Date Period
Prepare Departmental/Contribution Margin Statement
Figure 3.02-B
Sk8tr World Customs
Departmental Margin Statement - Skateboards
For Month Ended April 30, 20xx
Skateboards
Operating Revenue:
Net Sales
Cost of Merchandise Sold
Est Mdse. Inv. September 1
Net Purchases
Mdse. Available for Sale
Less Est. End Inv September 30
$ 5,500.00
7,000.00
$ 12,500.00
8,500.00
$ 6,500.00
Cost of Merchandise Sold
Gross Profit on Operations
% of Net
Sales
100%
0%
0%
Direct Expenses
Advertising Expense
Deprec. Exp - Store Equipment
Payroll Taxes Expense
Salary Expense
Supplies Expense
Total Direct Expenses
$ 250.00
95.00
250.00
850.00
125.00
1,570.00
24%
Departmental Margin 0%
7. Sk8tr World Customs offers custom skateboards and skateboard gear for sale.
Anna is the Accountant for the company, and she is currently preparing the departmental margin statements. Using Figure 3.02-B above, determine gross profit for the Skateboard Division.
A. $7,500
B. $2,500
C. $8,500
D. $15,500
Answer: