Question

Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	340 units @ $19
5	Purchase	315 units @ $21
10	Sales		235 units @ $29
15	Purchase	195 units @ $22
24	Sales		185 units @ $30

Multiple Choice

• $8,140

• $8,900

• $9,225

• $9,005

• $8,360

A company had net sales of $31,100 and ending accounts receivable of $3,100 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)

Multiple Choice

• 51.68 days.

• 36.38 days.

• 28.38 days.

• 47.58 days.

• 10.03 days

A company had $62 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:

Multiple Choice

• Debit Cash Over and Short for $62.

• Credit Cash Over and Short for $62.

• Debit Petty Cash for $62.

• Credit Petty Cash for $62.

• Debit Cash for $62.

Answer 1

Question 1

Correct answer---------$8,140

Working

FIFO
Total Units Available for sale		850
Units Sold		420
Closing Stock in Units		430
Valuation
Ending Inventory	195	@	$             22.00	$ 4,290
	235	@	$             21.00	$ 4,935
Value Of Ending Inventory				$              9,225
Cost of Goods sold	(17365-9225)			$              8,140

.

	Units	Cost per unit	value
Beginning Balance	340	$                   19.00	$ 6,460
Purchases
	315	$                   21.00	$ 6,615
	195	$                   22.00	$ 4,290
Total	850		$ 17,365

Question 2

Correct answer---------36.38 days

Working

Days' sales uncollected
(Accounts receivable	/	Sales) x 365	=	Days' sales uncollected
(3100	/	31100) x 365	=	36.38	days

Question 3

Correct answer---------Debit Cash Over and Short for $62.