1. The following information was available from the inventory records of Crane C
ID: 2510236 • Letter: 1
Question
1. The following information was available from the inventory records of Crane Company for January:
Units
Unit Cost
Total Cost
Balance at January 1
5000
$9.10
$45,500
Purchases:
January 6
5000
10.37
51,850
January 26
5000
10.74
53,700
Sales
January 7
(2000
)
January 31
(9000
)
Balance at January 31
4000
Assuming that Crane uses the periodic inventory system, what should be the cost of goods sold at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
A. $108,372
B. $102,298
C. $110,770
D. $40,486
2. Transactions for the month of June were:
Purchases
Sales
June 1
(balance) 3150 @
$3.30
June 2
2480
3
8730 @
3.20
6
6390
7
4820 @
3.40
9
4000
15
7130 @
3.50
10
1520
22
2080 @
3.60
18
5590
25
830
Assuming that perpetual inventory records are kept in dollars, the COGS on a LIFO basis is
A. $69,813
B. $68,058
C. $67,349
D. $67,251
3. Bonita Industries has the following items at year-end:
Cash in bank
$44,000
Petty cash
550
Short-term paper with maturity of 6 months
10,200
Postdated checks
1,940
Bonita should report cash and cash equivalents of
A. $54,750
B. $44,550
C. $52,750
D. $56,690
Units
Unit Cost
Total Cost
Balance at January 1
5000
$9.10
$45,500
Purchases:
January 6
5000
10.37
51,850
January 26
5000
10.74
53,700
Sales
January 7
(2000
)
January 31
(9000
)
Balance at January 31
4000
Explanation / Answer
Units Unit cost Total Balance at January 1 5000 9.1 45500 6-Jan 5000 10.37 51850 26-Jan 5000 10.74 53700 Total 15000 151050 Weighted-average cost=151050/15000= $10.07 Cost of goods sold = 11000*10.07= $110770 Option C is correct 2 COGS=(2480*3.3)+(6390*3.2)+(4000*3.4)+(820*3.4)+(700*3.2)+(5590*3.5)+(830*3.6)=$69813 Option A is correct 3 Cash and cash equivalents=44000+550+10200= $54750 Option A is correct
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