1. Baines, Inc. had the following information available for itsinventory of Item #565 during 2014:<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />
|
Beginning inventory |
10 units at $61 |
|
First purchase |
25 units at $63 |
|
Second purchase |
30 units at $64 |
|
Third purchase |
15 units at $73 |
Bainesuses the periodic system and reports that there are 20 units of Item #565 onhand at the end of the year. What is the amount of the inventory at the end ofthe year according to the average cost method?
a. $1,300
b. $1,305
c. $1,415
d. $1,2363
2. Troy, Inc. had the following information available for itsinventory of Item #XQ-211 during 2014:
|
Beginning inventory |
10 units at $60 |
|
First purchase |
25 units at $63 |
|
Second purchase |
30 units at $64 |
|
Third purchase |
10 units at $70 |
Troy usesthe periodic system and reports that there are 20 units of Item #XQ-211 on handat the end of the year. What is the amount of inventory at the end of the yearaccording to the last-in, first-out method?
a. $1,230
b. $1,220
c. $1,240
d. $1,340
3. Harris Industries had the following information available for itsinventory of Item #FX-112 during 2014:
|
Beginning inventory |
10 units at $50 |
|
First purchase |
25 units at $53 |
|
Second purchase |
30 units at $54 |
|
Third purchase |
15 units at $60 |
Harrisuses the periodic system and reports that there are 20 units of Item #FX-112 onhand at the end of the year. What is the amount of inventory at the end of theyear according to the first-in, first-out method?
a. $1,030
b. $1,140
c. $1,170
d. $1,060
4. JacksonCompany’s Allowance for Doubtful Accounts has a debit balance of $500 at theend of the year (before adjustment). Jackson estimates uncollectible accounts expense at 3% of net sales. Ifnet sales are $600,000, what is the amount of the adjusting entry to record baddebt expense for the year?
a. $18,500
b. $17,500
c. $18,000
d. none of the above
5. Afterits accounts are adjusted and closed at the end of its fiscal year, LarkinCompany’s Accounts Receivable has a balance of $450,000 and its Allowance forDoubtful Accounts has a balance of $25,000. What is the net realizable value ofLarkin’s accounts receivable?
a. $25,000
b. $425,000
c. $450,000
d. $455,000
6. Sarah Lucky is paid $25per hour, with time and a half for all hours worked in excess of 40 during aweek. The following is Sarah’s payrolldata for the current week: hours worked, 46; federal income tax withheld, $350; cumulativeearnings for year prior to current week, $99,700; social security tax rate,6.0% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings. Whatis Sarah’s net pay?
a. $875.00
b. $838.62
c. $857.00
d. $1133.14
7. On March 1, 2014, BaxterIndustries borrowed $40,000 by signing a 30 day, 6% interest bearing note. Whenthe note is paid on March 31, the entry to record the payment should include a
a. debit to Interest Payable$200
b. debit to Interest Expense$200
c. credit to Cash for$40,000
d. credit to Cash for $42400
