Cinnamon Buns Co

question 40

Multiple Choice

Cinnamon Buns Co. (CBC) started 2018 with $52,000 of merchandise on hand. During 2018, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.
-What is cost of goods available for sale, assuming CBC uses the gross method?

• A) $312,480.
• B) $326,000.
• C) $331,480.
• D) $337,000.

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Definitions:

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifically the order of words and phrases to form proper sentences.

Morphology

The study of the form and structure of organisms and their specific structural features.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially the arrangement of words and phrases.

Phonics

A method of teaching reading and writing by developing learners' phonemic awareness—the ability to hear, identify, and manipulate phonemes—in order to teach the correspondence between these sounds and the spelling patterns (graphemes) that represent them.