Which of the following would be subtracted from the balance per books on a bank

ID: 2712426 • Letter: W

Question

Which of the following would be subtracted from the balance per books on a bank reconciliation?

error in recording a check for $732 as $723

notes collected by the bank

outstanding checks

deposits in transit

The following units of an inventory item were available for sale during the year:

The firm uses the periodic inventory system. During the year, 60 units of the item were sold.

The value of ending inventory using LIFO is

a.$1,375

b.$1,350

c.$1,250

d.$1,150

During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory?

LIFO method

can not tell without more information

FIFO method

average cost method

Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purchase 30 units at $65 Third purchase 15 units at $70

During year 60 units were sold using LIFO are as follow;

15 units @ 70

30 units @ 65

15 units @ 60

Thus value of ending inventory using LIFO =

(10 units @60 = $600 + 10 units @55 = 550) = $1150

The value of ending inventory using LIFO is option – (d) $1150

During a period of falling prices, FIFO methods generally results in the lowest balance sheet amount for inventory.

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