22) A company had the following purchases and sales during its first year of ope

Question

22) A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $1206 units February: 20 units at $125 5 units May: 15 units at $1309 units September: 12 units at $135 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory. Using the Periodic FIFO inventon valuation method, what is the cost of the ending inventory? (Assume all sales of the month.) 22) were made on the last day A) $3,405. B) $3,200. C) $3,540. D) S3,445. E) $3,270. 23) When a petty cash fund is in use: 23) A) Petty Cash is credited when funds are replenished. B) Petty Cash is debited when funds are replenished. C) Cash is debited when funds are replenished. D) Expenses paid with petty cash are recorded when the fund is replenished E) Expenses are not recorded.

Explanation / Answer

22) Calculate ending inventory under Periodic FIFO method :

FIFO means first in first out so ending 26 unit is included in ending inventory.

Cost of ending inventory = (10*140+12*135+4*130) = $3540

so answer is c) $3540

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