Use the data below to answer the questions that follow. Assume that the company uses the 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
|
$3,011.00
|
|
March 31
|
On hand, 220 units
|
|
Q1. If the company uses the weighted average cost inventory method, the amount assigned to cost of goods sold for March would be
a.$ 1,895.10
b.$ 1,952.50
c.$ 1,820.60
d.$ 1,858.97
Q2. If the company uses the LIFO inventory method, the amount assigned to the March 31st inventory would be:
a.$ 1,115.90
b.$ 1,190.40
c.$ 1,152.03
d.$ 1,091.20
Q3. Which of the following procedures would not be performed in preparing a bank reconciliation of a checking account?
a.Tracing deposits listed on the bank statement to the books to identify deposits in transit
b.Arranging canceled checks in numerical order and tracing them to the books to identify outstanding checks
c.Identifying items added or credited on the bank statement which have not been recorded as cash receipts by the company
d.Preparing journal entries to reverse the transactions recorded for checks which are still outstanding
Q4. Which of the two approaches for the allowance method of accounting for bad debts emphasizes matching bad debts expense with revenue on the income statement?
a.the percentage of accounts receivable approach
b.the percentage of net credit sales approach
c.both (a) and (b)
d.neither (a) nor (b)
Q5. Super Corp. reported net sales (all on credit) of $1,600,000 and cost of goods sold of $1,100,000 for 2001. Its beginning balance of Accounts Receivable was $150,000. The accounts receivable balance decreased by $10,000 during 2001. What is Super's accounts receivable turnover rate for 2001?
a.7.59
b.10.32
c.10.67
d.11.03