Q1) Use data below to reply questions that follow. Suppose that company uses periodic inventory system.
|
March 1
|
On hand, 150 units @ $5.50 each
|
$ 825.00
|
|
March 5
|
Purchased 300 units @ $5.22 each
|
1,566.00
|
|
March 14
|
Purchased 125 units @ $4.96 each
|
620.00
|
|
|
Total cost of goods available for sale
|
$3,011.00
|
|
March 31
|
On hand, 220 units
|
|
1. If company uses weighted average cost inventory method, amount assigned to cost of goods sold for March would be:
a. $ 1,895.10
b. $ 1,952.50
c. $ 1,820.60
d. $ 1,858.97
2. If company uses LIFO inventory method, amount assigned to March 31st inventory would be:
a. $ 1,115.90
b. $ 1,190.40
c. $ 1,152.03
d. $ 1,091.20
3. Which of following procedures would not be carried out in preparing bank reconciliation of a checking account?
a. Tracing deposits listed on the bank statement to the books to identify deposits in transit
b. Arranging cancelled checks in numerical order and tracing them to books to recognize outstanding checks
c. Recognizing items added or credited on bank statement which have not been recorded as cash receipts by the company
d. Preparing journal entries to reverse transactions recorded for checks that are still outstanding.