Question

1. Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to the ending inventory using FIFO. Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 160 units @ $11 5 Purchase 225 units @ $13 10 Sales 145 units @ $21 15 Purchase 105 units @ $14 24 Sales 95 units @ $22 Multiple Choice $3,215 $3,355 $6,155 $2,940 $2,800

2.

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	220 units @ $17
5	Purchase	255 units @ $19
10	Sales		175 units @ $27
15	Purchase	135 units @ $20
24	Sales		125 units @ $28

• $5,460

• $6,025

• $5,940

• $5,825

• $5,260

3.

A company has beginning inventory of 30 units at a cost of $13.00 each on October 1. On October 5, it purchases 21 units at $14.00 per unit. On October 12 it purchases 31 units at $15.00 per unit. On October 15, it sells 63 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?

• $532.00

• $247.00

• $285.00

• $315.00

• $600.00

4.

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $211,500. The following additional information is also available:

• Plunkett sold and shipped goods costing $37,300 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $211,500.
• Plunkett purchased goods costing $43,300 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $211,500.
• Plunkett's ending inventory balance of $211,500 included $14,300 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.)
• Plunkett's ending inventory balance of $211,500 did not include goods costing $94,300 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end.

Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is:

• $205,500

• $168,200

• $191,200

• $153,900

• $197,200

5.

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts:

Accounts receivable	$	389,000	debit
Allowance for uncollectible accounts		640	credit
Net Sales		940,000	credit

All sales are made on credit. Based on past experience, the company estimates that 0.5% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?

• $1,378

• $4,700

• $3,890

• $2,018

• $5,170

Answer 1

1
		Amount	Per unit	Units
01-May	Beginning inventory	1760	11	160
05-May	Purchases	2925	13	225
15-May	Purchases	1470	14	105
	Cost of goods available for sale	6155		490
			Less units sold	240
			Ending inventory	250
	Ending inventory
	FIFO	Units	Per unit	Total
	05 may purchases	145	13	1885
	15 may purchases	105	14	1470
	Total	250		3355
	So correct answer is 3355
2
		Amount	Per unit	Units
01-May	Beginning inventory	3740	17	220
05-May	Purchases	4845	19	255
15-May	Purchases	2700	20	135
	Cost of goods available for sale	11285		610
			Less units sold	300
			Ending inventory	310
	Ending inventory
	FIFO	Units	Per unit	Total
	05 may purchases	175	19	3325
	15 may purchases	135	20	2700
	Total	310		6025
	Cost of goods available for sale	11285
	Ending inventory	6025
	Cost of goods sold	5260
	Correct answer is 5260
3
		Amount	Per unit	Units
01-Oct	Beginning inventory	390	13	30
05-Oct	Purchases	294	14	21
12-Oct	Purchases	465	15	31
	Cost of goods available for sale	1149		82
			Less units sold	63
			Ending inventory	19
	Ending inventory
	FIFO	Units	Per unit	Total
	12 oct purchases	19	15	285
	Total	19		285
5	Bad debt expense 940000*.5%	4700
	Correct answer is 4700