Question

1)

If a trademark is developed internally, it cannot be recognized as an intangible asset on the statement of financial position.

True

False

2)

On January 3, Bramble Corp. purchased 2 portable electronic keyboards for $547 each. On January 20, it purchased 2 more of the same model keyboards for $482 each. During the month, it sold 2 keyboards; 1 was purchased on January 3 and the other was purchased on January 20.

Calculate the cost of goods sold and ending inventory for the month using specific identification.

Cost of goods sold		$
Ending inventory		$

3)

Bramble Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $131 each. During June, the company had the following purchases and sales of bookcases:

			Purchases				Sales
Date			Units		Unit cost		Units		Unit price
June	6		1,200		$133
	10						1,050		$197
	14		1,740		134
	16						1,630		202
	26		1,030		135

A) what is the cost of goods sold?

B) Cost of the ending inventory

C)

Gross profit
Gross profit margin

D)

Is the gross profit determined in part (C) higher or lower than it would be if Bramble Furniture had used the FIFO?

The gross profit is :______________ than it would be using the FIFO cost method because the cost of the product being purchased ii fallingrising.

Answer 1

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