Question

#1. Inventory records for Kapital Inc revealed the following

Date	Transaction	# of units	Unit Cost
Mar 1	Beginning Inventory	1000	$ 7.20
Mar 10	Purchase	600	7.25
Mar 16	Purchase	800	7.30
Mar 23	Purchase	600	7.35

Kapital sold 2200 units of inventory during the month. Costs of goods sold assuming FIFO would be ?

A) 16,660

B)15,930

C)16,040

D) 5,130

E) 16,760

#2. The following information was taken from Apex's bank reconciliation at the end of the year

Cash GL balance	$ 8,000
Checks outstanding	6,000
Note collected by the bank	1,500
Service fee	20
Deposits in transit	4,000
NSF Check	480

What is the correct cash balance that should be reported in Apex's balance sheet at the end of the year?

A) 8,000

B) 15,000

C) 9,000

D) 13,000

E) 12,000

Answer 1

#1.

Cost of goods sold under FIFO will be :

= (1000*$7.2)+(600*$7.25)+(600*$7.30)

=$15,930

#2.

Correct cash balance that should be reported in Apex balance sheet at the end of year

=$8000+$1500-$20-$480

=$9,000