Exam
Name___________________________________
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
Provide an appropriate response.
1)
Give two reasons why a business would prefer to calculate stock turnover at retail rather
than at cost.
1)
2)
Explain the difference between an operating loss and an absolute loss.
2)
3)
Define markdown in your own words.
3)
4)
Describe how to determine average inventory for a full year.
4)
5)
Explain which inventory evaluation method you would prefer. Why? How is it calculated?
5)
6)
Which departments in a grocery store do you think have the highest inventory turnover?
The lowest?
6)
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
7)
Find the amount of markup of an item which cost a store $79. The store has a 25% markup.
A)
$98.75
B)
$63.20
C)
$316.01
D)
$19.75
Find the missing quantities. If there is no operating loss or absolute loss, write “none.”
8)
Cost
Operating
Expense
Breakeven
Point
Reduced
Price
Operating
Loss
Absolute
Loss
?$17 $134 ? ? $9
A)
Cost = $117
Reduced price = $108
Operating loss = $26
B)
Cost = $117
Reduced price = $108
Operating loss = none
C)
Cost = $151
Reduced price = $142
Operating loss = $17
D)
Cost = $143
Reduced price = $135
Operating loss = $8
Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
9)
Cost Price Markup % Markup on Cost Selling Price
44%$92.61
A)
Cost Price: $64.31
Markup: $28.30
B)
Cost Price: $51.86
Markup: $40.75
C)
Cost Price: $28.30
Markup: $64.31
D)
Cost Price: $40.75
Markup: $51.86
Solve for the missing numbers. Markup is based on selling price. Round dollar amounts to the nearest cent.
10)
? % C $58.64
37% M $ ?
100% S$ ?
10)
A)
63% C $ 58.64
37% M $ 34.44
100% S $ 93.08
B)
137% C $ 58.64
37% M $ 80.34
100% S $ 138.98
C)
63% C $ 58.64
37% M $ 21.70
100% S $ 80.34
D)
137% C $ 58.64
37% M $ 21.70
100% S $ 80.34
Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
11)
Chang bought a bumper marked up 27.4% based on selling price at a local auto repair shop. If the
markup is $30.33, find (a) the selling price, (b) the cost, and (c) the markup as a percent of the cost.
11)
A)
(a) $141.02
(b) $110.69
(c) 27.4%
B)
(a) $110.69
(b) $141.02
(c) 21.5%
C)
(a) $110.69
(b) $80.36
(c) 37.7%
D)
(a) $80.36
(b) $110.69
(c) 27.4%
Solve the problem.
12)
Over a year period, a hardware store made the following purchases of hammers: 24 hammers at
$7.64, 30 hammers at $6.70, 36 hammers at $4.60, and 26 hammers at $7.86. Inventory at the end of
the year shows 32 hammers remain. Find the inventory value by (a) weighted average method, (b)
FIFO Method, and (c) LIFO Method. Round final answers to the nearest cent.
12)
A)
(a) $208.00
(b) $236.96
(c) $231.96
B)
(a) $214.40
(b) $236.96
(c) $251.52
C)
(a) $208.00
(b) $231.96
(c) $236.96
D)
(a) $180.80
(b) $244.48
(c) $208.00
Find the stock turnover at cost and at retail. Round to the nearest hundredth.
13)
Average
Inventory
at Cost
Average
Inventory
at Retail
Cost of
Goods
Retail
Sales
Turnover
at Cost
Turnover
at Retail
$19,637 $38,235 $56,750.93 $109,352.10 ? ?
13)
A)
Turnover at cost =2.89
Turnover at retail =2.86
B)
Turnover at cost =1.93
Turnover at retail =1.95
C)
Turnover at cost =5.57
Turnover at retail =1.48
D)
Turnover at cost =2.86
Turnover at retail =2.89
Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
14)
Cost Price Markup % Markup on Cost Selling Price
$10.20 $60.11
14)
A)
Cost Price: $70.31
% Markup on Cost: 17.0%
B)
Cost Price: $70.31
% Markup on Cost: 14.5%
C)
Cost Price: $49.91
% Markup on Cost: 20.4%
D)
Cost Price: $60.11
% Markup on Cost: 17.0%
Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.
15)
Original Price % Markdown $ Markdown Reduced Price
?43%$2.46 ?
15)
A)
Original price = $3.26
Reduced price = $5.72
B)
Original price = $3.52
Reduced price = $1.06
C)
Original price = $5.72
Reduced price = $8.18
D)
Original price = $5.72
Reduced price = $3.26
Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
16)
Cost Price Markup % Markup on Cost Selling Price
$65.86 29%
16)
A)
Markup: $19.10
Selling Price: $84.96
B)
Markup: $29.00
Selling Price: $94.86
C)
Markup: $94.86
Selling Price: $160.72
D)
Markup: $227.10
Selling Price: $292.96
Find the average inventory.
17)
Date
Inventory amount
at Retail
January 1$20,283
March 1$25,335
August 1$32,349
November 1$18,584
December 31 $27,924
17)
A)
$31,118.75
B)
$32,349.00
C)
$124,475.00
D)
$24,895.00
Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
18)
A local dealer sells baseballs for $25 each. If $12.97 is the cost, what is the percent of markup on the
cost?
18)
A)
48.1%
B)
14.0%
C)
51.9%
D)
92.8%
Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.
19)
Original Price % Markdown $ Markdown Reduced Price
$816.00 ? ? $677.28
19)
A)
% Markdown =83%
$ Markdown = $138.72
B)
% Markdown =83%
$ Markdown = $562.14
C)
% Markdown =17%
$ Markdown = $115.14
D)
% Markdown =17%
$ Markdown = $138.72
Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.
20)
100% C $88.53
17% M $ ?
117% S $ ?
20)
A)
100% C $ 88.53
17% M $103.58
117% S $192.11
B)
100% C $ 88.53
17% M $ 15.05
117% S $ 73.48
C)
100% C $ 88.53
17% M $ 15.05
117% S $ 71.53
D)
100% C $ 88.53
17% M $ 15.05
117% S $103.58
Find the missing numbers. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
21)
Cost Price Markup % Markup on Cost Selling Price
$6.36 $9.48
21)
A)
Markup: $3.12
% Markup on Cost: 49.1%
B)
Markup: $15.84
% Markup on Cost: 40.2%
C)
Markup: $3.12
% Markup on Cost: 32.9%
D)
Markup: $9.48
% Markup on Cost: 67.1%
Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
22)
A store sells an item for $340 each. If this is a 38.1% markup on the selling price, find the equivalent
markup percent on cost.
22)
A)
44.6%
B)
27.6%
C)
340%
D)
61.6%
Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.
23)
Original Price % Markdown $ Markdown Reduced Price
?12% ? $113.74
23)
A)
Original price = $129.25
$ Markdown = $15.51
B)
Original price = $127.39
$ Markdown = $13.65
C)
Original price = $100.09
$ Markdown = $13.65
D)
Original price = $98.23
$ Markdown = $15.51
Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
24)
The amount of markup on a store item is $19. Find the cost to the store if the markup is 20%.
24)
A)
$95.00
B)
$15.83
C)
$22.80
D)
$3.80
Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
25)
What–A–Pane Inc. sells windows for $155.32 each after a markup of $34.73. Find (a) the cost of a
window, (b) the markup as a percent of cost, and (c) the markup as a percent of selling price.
25)
A)
(a) $190.05
(b) 18.3%
(c) 81.7%
B)
(a) $190.05
(b) 81.7%
(c) 28.8%
C)
(a) $120.59
(b) 22.4%
(c) 28.8%
D)
(a) $120.59
(b) 28.8%
(c) 22.4%
Find the missing quantities by first computing the markup on one base and then computing the markup on the other.
Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
26)
Cost Markup
Selling
Price
% Markup
on Cost
% Markup on
Selling Price
?$29.54 ?191.6% ?
26)
A)
Cost = $15.42
Selling price = $44.96
% Markup on selling price =65.7%
B)
Cost = $56.60
Selling price = $86.14
% Markup on selling price =34.3%
C)
Cost = $15.42
Selling price = $44.96
% Markup on selling price =34.3%
D)
Cost = $56.60
Selling price = $86.14
% Markup on selling price =65.7%
Solve the problem.
27)
A furniture store has an average inventory of $5444 at retail, and an average inventory of $3460 at
cost. The cost of goods sold for the same period is $19,756.60 and sales of furniture were $30,867.48.
Find (a) Stock turnover at cost, and (b) stock turnover at retail. Round to the nearest hundredth.
27)
A)
(a) 3.63, (b) 8.92
B)
(a) 5.71, (b) 5.67
C)
(a) 5.67, (b) 5.71
D)
(a) 1.57, (b) 1.56
Solve for the missing numbers. Markup is based on selling price. Round dollar amounts to the nearest cent.
28)
57% C $ ?
? % M $ ?
100% S $93.11
28)
A)
57% C $ 53.07
157% M $ 40.04
100% S $ 93.11
B)
57% C $ 53.07
43% M $ 40.04
100% S $ 93.11
C)
57% C $ 40.04
43% M $ 53.07
100% S $ 93.11
D)
57% C $133.15
157% M $ 40.04
100% S $ 93.11
Find the equivalent markup. Round to the nearest tenth of a percent.
29)
Markup on cost:
Markup on selling price: 29.2%
29)
A)
22.6%
B)
41.2%
C)
77.4%
D)
58.8%
Find the inventory values using (a) the weighted–average method, (b) the FIFO method, and (c) the LIFO method. Round
final answers to the nearest dollar.
30)
Purchases Now in Inventory
Beginning inventory: 35 units at $6.00
June: 45 units at $6.66
August: 30 units at $7.06 40 units
30)
A)
(a) $262 (b) $243 (c) $278
B)
(a) $262 (b) $278 (c) $243
C)
(a) $722 (b) $240 (c) $282
D)
(a) $722 (b) $278 (c) $282
Find the missing quantities by first computing the markup on one base and then computing the markup on the other.
Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
31)
Cost Markup
Selling
Price
% Markup
on Cost
% Markup on
Selling Price
$27.29 ?$30.29 ? ?
31)
A)
Markup = $6.00
% Markup on cost =9.9%
% Markup on selling price =72.7%
B)
Markup = $6.00
% Markup on cost =9.9%
% Markup on selling price =11.0%
C)
Markup = $3.00
% Markup on cost =11.0%
% Markup on selling price =90.1%
D)
Markup = $3.00
% Markup on cost =11.0%
% Markup on selling price =9.9%
Solve the problem. Round rates to the nearest tenth of a percent and dollar amounts to the nearest dollar when necessary.
32)
A store sells an item for $510 each. If this is a 43.9% markup on cost, find the equivalent markup
percent on the selling price.
32)
A)
78.3%
B)
30.5%
C)
510%
D)
54.4%
Solve the problem. Round dollars to the nearest cent and rates to the nearest tenth of a percent.
33)
The Oak House had a markup of $24.85 on an oak table that they sold for $74.99. Find (a) the cost,
(b) the markup on cost, and (c) the selling price as a percent of cost.
33)
A)
$50.14, 33.1%, 66.9%
B)
$99.84, 24.9%, 75.1%
C)
$74.99, 33.1%, 301.8%
D)
$50.14, 49.6%, 149.6%
Find the equivalent markup. Round to the nearest tenth of a percent.
34)
Markup on cost: 74.6%
Markup on selling price:
34)
A)
42.7%
B)
1.1%
C)
57.3%
D)
98.9%
Find the missing quantities. Round rates to the nearest whole percent and money to the nearest cent.
35)
Original Price % Markdown $ Markdown Reduced Price
$871.00 ?$243.88 ?
35)
A)
% Markdown =28%
Reduced price = $627.12
B)
% Markdown =72%
Reduced price = $243.88
C)
% Markdown =72%
Reduced price = $627.12
D)
% Markdown =28%
Reduced price = $1114.88
Solve the problem.
36)
Bed ‘n’ Board Linen took inventory on the first of each month for the full year. The sum of the
inventories was $674,769. On December 31, inventory was taken again and amounted to $53,418.
Find the average inventory for the year.
36)
A)
$60,682.25
B)
$56,014.38
C)
$47,796.23
D)
$51,779.25
Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
37)
The Oak Gallery had a clearance sale during which it sold an oak coffee table for $250. If the cost
was $154 and the operating expenses were 25% of cost, find the amount of profit or loss.
37)
A)
$57.50 profit
B)
$24.00 profit
C)
$57.50 loss
D)
$24.00 loss
Solve for the missing numbers. Markup is based on cost. Round dollar amounts to the nearest cent.
38)
? % C $49.69
12% M $ ?
112% S $ ?
38)
A)
100% C $49.69
12% M $ 5.96
112% S $55.65
B)
88% C $49.69
12% M $ 5.96
100% S $55.65
C)
100% C $49.69
12% M $ 5.96
88% S $55.65
D)
100% C $49.69
12% M $55.65
112% S $105.34
Solve the problem.
39)
The August 31 inventory at Kitchen Collection was $42,420 at cost and $60,600 at retail. Purchases
during the next four months were $53,260 at cost and $76,100 at retail. After August 31, net sales
were $97,700. Use the retail method to estimate the value of the inventory at cost on December 31.
39)
A)
$27,300
B)
-$2010
C)
$390
D)
$95,690
Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
40)
The Galerie d’Art paid $134.20 for a limited edition Graux print. The original selling price was
$201.30, but this was marked down 60% to make room for incoming pieces. If operating expenses
are 21% of cost, find the operating loss and the absolute loss.
40)
A)
operating loss: $81.86
absolute loss: $53.68
B)
operating loss: $53.68
absolute loss: $81.86
C)
operating loss: $81.86
absolute loss: $120.78
D)
operating loss: $120.78
absolute loss: $53.68
Find the missing quantities by first computing the markup on one base and then computing the markup on the other.
Round rates to the nearest tenth of a percent and dollar amounts to the nearest cent.
41)
Cost Markup
Selling
Price
% Markup
on Cost
% Markup on
Selling Price
?$56.40 $139.71 ? ?
41)
A)
Cost = $196.11
% Markup on cost =67.7%
% Markup on selling price =40.4%
B)
Cost = $196.11
% Markup on cost =40.4%
% Markup on selling price =67.7%
C)
Cost = $83.31
% Markup on cost =67.7%
% Markup on selling price =40.4%
D)
Cost = $83.31
% Markup on cost =40.4%
% Markup on selling price =67.7%
Find the equivalent markup. Round to the nearest tenth of a percent.
42)
Markup on cost:
Markup on selling price: 8.2%
42)
A)
7.6%
B)
8.9%
C)
91.1%
D)
92.4%
Find the missing quantities. If there is no operating loss or absolute loss, write “none.”
43)
Cost
Operating
Expense
Breakeven
Point
Reduced
Price
Operating
Loss
Absolute
Loss
$19.84 ?$27.84 $17.46 ? ?
43)
A)
Operating exp = $47.68
Operating loss = $37.30
Absolute loss = $10.38
B)
Operating exp = $8
Operating loss = $10.38
Absolute loss = $2.38
C)
Operating exp = $8
Operating loss = $2.38
Absolute loss = $10.38
D)
Operating exp = $10.38
Operating loss = $8
Absolute loss = $2.38
Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
44)
The Jewelry Store priced its entire stock of sterling silver at $1234. The original price was $2364.
Find the percent of markdown on the original price.
44)
A)
92%
B)
48%
C)
52%
D)
192%
Find the average inventory.
45)
Date
Inventory amount
at Retail
January 1 $17,790
August 1 $23,691
October 1 $17,732
45)
A)
$23,691.00
B)
$29,606.50
C)
$59,213.00
D)
$19,737.67