Question

1. The following lots of Commodity Z were available for sale during the year.

   Beginning inventory	11 units at $47
   First purchase	18 units at $55
   Second purchase	22 units at $57
   Third purchase	14 units at $63

   The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?

   a.$1,034

   b.$3,643

   c.$3,621

   d.$1,338

2. The following lots of a Commodity P were available for sale during the year.

   Beginning inventory	5 units at $61
   First purchase	15 units at $63
   Second purchase	10 units at $74
   Third purchase	10 units at $77

   The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.

   What is the amount of cost of goods sold for the year according to the LIFO method?

   a.$1,250

   b.$1,510

   c.$1,375

   d.$1,380

3. The following lots of a Commodity P were available for sale during the year.

   Beginning inventory	5 units at $61
   First purchase	15 units at $63
   Second purchase	10 units at $74
   Third purchase	10 units at $77

   The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.

   What is the amount of cost of goods sold for the year according to the FIFO method?

   a.$1,375

   b.$1,510

   c.$1,380

   d.$1,250

4. Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31.

   Cash balance per books, 5/31	$3,399
   Deposits in transit	274
   Notes receivable and interest collected by bank	811
   Bank charge for check printing	47
   Outstanding checks	1,007
   NSF check	170

   a.$3,307

   b.$1,085

   c.$3,993

   d.$2,666

Answer 1

Q1.
Ending inventory as per FIFO
Third purchase (14 units @ 63)	882
Second purchase (8 units @ 57)	456
Ending inventory as per FIFO	1338
Answer is d. $ 1338
Q2.
Cost of goods sold under LIFO:
Third purchase (10 units @ 77)	770
Second purchase (10 units @ 74)	740
Cost of goods sold under LIFO:	1510
Answer is b. $ 1510.
Q3.
Cost of goods sold under FIFO
Beginning inventory (5 units @ 61)	305
First purchase (15 units @ 63)	945
Cost of goods sold under FIFO	1250
Answer is d. $ 1250
Q4.
Balance as per books		3399
Add: Notes receivable with interest	811
Less: Printing charges		-47
Less: NSF check			-170
Adjusted balance as per books		3993
Answer is c. $ 3993