QUESTION 35 Alphabet Company, which uses the periodic inventory method, purchase

Question

QUESTION 35 Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no beginning inventory. It purchasedA thru G in January at $2.50 per letter. In February, it purchased H thru L at $4.50 per letter. It purchased M thru R in March at $5.50 per letter. It sold A, D, E H, J and N in October. There were no additlonal purchases or sales during the remainder of the year If lphabet Company uses the weighted average method, what is the cost of its ending inventory? (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.) $49 $37 $27 $52.5 QUESTION 36 Jane Company received a 60-day, 15% note for $9,000 on June 16, Which of the following statements is true? A. Jane should record a total note receivable due of $9,225 on June 16 The principal of the note plus interest is due on August 16 The maturity value of this note is $9,225 Jane will receive $9,000 plus interest of $1,350 at maturity Question Completion status: QUESTION 37 While preparing a bank reconcilation, an accountant discovered that a $327 check returned with the bank statement had been recorded erroneously in the depositor's accounting records as $372. In preparing the bank reconciliation the appropriate action to correct this error would be to A Add $45 to the balance per the bank statement B Deduct $45 from the balance per the bank statement C. Deduct $45 from the balance per the depositor's records Add $45 to the balance per the depositor's records QUESTION 38 Which of the following results the highest amount for Sales Revenue in the income statement during a period of rising prices? A. B. C. D. Average cost Specific identification FIFO LIFO None of the above QUESTION 39 Acme, Inc. 's books show an ending cash balance of $12,500 before preparing the bank reconciliation, Given the bank reconciliation shows outstanding checks of $3500, deposits in transit of $2500, NSF check of $150, and interest earned on the bank account of $60, the company's up-to-date ending cash balance equals: $8910. $12,410 $12,710 $11,410 QUESTION 40 Acme, Inc.'s books show an ending cash balance of $6,250 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of S1,750, deposits in transit of $1,250, NSF check of $75, and interest earned on the bank account of $30, the company's up-to-date ending cash balance equals: $6,355. $4,455. $5,705. S6,205,

Explanation / Answer

Answer:

35.Alphabet Company => $ 49

Weighted Average of all Purchases = 2.50 x 7 + 4.5 x 5 + 5.5 x 6 = 73 / 18 = 4.0556 x 12 = 48.67 ~ 49

36.Jane Company => C.Maturity value of this note is $9225

Interest Receivable = 9000 x 15% *60 / 360 = 225 + $9000 = $9225

37.D. Add $ 45 to the balance per the Depositor's Record

38.E. None of the above as Sales revenue will be sale for all methods

39.Acme Inc.- $ 12410

12500 - 150 + 60 = $ 12410

40.$ 6205

$6250 - $75 + $30 = $6205

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