Question

1. A company had the following purchases during its first year of operations:

	Purchases
January:	11 units at $121
February:	21 units at $131
May:	16 units at $141
September:	13 units at $151
November:	11 units at $161

On December 31, there were 31 units remaining in ending inventory. These 31 units consisted of 3 from January, 5 from February, 7 from May, 5 from September, and 11 from November. Using the specific identification method, what is the cost of the ending inventory?

2. During the first week of January, an employee works 44 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $14 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $93 in federal income taxes withheld. What is the amount of this employee’s net pay for the first week of January?

3. Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $30,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following:

Deposit in transit	3,850
Outstanding checks	1,485

Additionally, a $57 check written and recorded by the company correctly was recorded by the bank as a $75 deduction.
The adjusted cash balance per the bank records should be:

4. An employee earns $5,950 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $200 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $168 and contributes $84 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.)

Answer 1

1	Ending Inventory
	January:	3 units at $121	363
	February:	5 units at $131	655
	May:	7 units at $141	987
	September:	5 units at $151	755
	November:	11 units at $161	1771
	Total cost of the ending inventory		4531
2	Calculation of Net Pay
	Regular wages	560
	Overtime	84
	Gross Pay	644
	Less: Social Security	39.93
	less: Medicare	9.34
	Less: Federal income tax	93
	Net Pay	501.73
3	The adjusted cash balance per the bank records should be:
		30361+3850-1485+18
		32744
4	Gross Pay	5950
	Less: Social Security	368.90
	less: Medicare	86.28
	Less: Federal income tax	200.00
	Less: Health Insurance	168.00
	Less: retirement plan	84
	Net Pay	5042.83