Question - Use the following information from Tack Company for the month of April to answer questions 1 through 3.
|
|
|
Number of Units
|
Unit Count
|
Total Cost
|
|
April 1
|
Beginning inventory
|
75
|
$25
|
$1,875
|
|
April 3
|
Purchase
|
348
|
27
|
9,396
|
|
April 15
|
Purchase
|
257
|
28
|
7,196
|
|
|
|
680
|
|
$18,467
|
Tack Company sells 575 units of inventory for $75 each.
1. Assume that Tack uses a periodic FIFO inventory system. What is the dollar value of its ending inventory?
a. $2,940
b. $2,685
c. $2,625
d. $2,868
e. $2,705
2. Assume that Tack uses a periodic LIFO inventory system. What is the dollar value of its ending inventory?
a. $2,940
b. $2,685
c. $2,625
d. $2,868
e. $2,705
3. Assume that Tack uses a periodic specific identification inventory system. Its ending inventory consists of 22 units from beginning inventory, 6 units from the April 3 purchase, and 77 units from the April 15 purchase. What is the dollar value of its ending inventory?
a. $2,940
b. $2,685
c. $2,625
d. $2,868
e. $2,840
4. Billing Industries received its utility bill for the current period of $800 and immediately paid it. Its journal entry to record this transaction includes a
a. Credit to Utility Expense for $800.
b. Debit to Utility Expense for $800.
c. Debit to Accounts Payable for $800.
d. Debit to Cash for $800.
e. Credit to Common Stock for $800.
5. On May 1, Chuck's Cleaning Service collected $3,500 cash from a customer in advance of five months of cleaning service. Chuck's journal entry to record this transaction includes a
a. Credit to Unearned Cleaning Service Fees for $3,500.
b. Debit to Cleaning Service Fees Earned for $3,500.
c. Credit to Cash for $3,500.
d. Debit to Unearned Cleaning Service Fees for $3,500.
e. Credit to Common Stock for $3,500.