Accounting Midterm Questions

If a company receives $11,300 from a client for services provided, the effect on the accounting equation would be:

Assets increase $11,300 and equity increases $11,300.

Determine the net income of a company for which the following information is available for the month of September.

Service revenue	$ 320,000
Rent expense	58,000
Utilities expense	4,200
Salaries expense	91,000

166,800

A company is considering purchasing a parcel of land that was originally acquired by the seller for $101,000. While the land is currently offered for sale at $182,000, it is considered by the purchaser as easily being worth $172,000, and is finally purchased for $169,000, the land should be recorded in the purchaser’s books at:

$169,000

Cage Company had net income of $404 million and average total assets of $2,140 million. Its return on assets (ROA) is:

18.9%

Echo Company has assets of $620,000, liabilities of $260,000, and equity of $360,000. It buys office equipment on credit for $85,000. What would be the effects of this transaction on the accounting equation?

Assets increase by $85,000 and liabilities increase by $85,000.

If assets are $100,000 and liabilities are $32,500, then equity equals:

$67,500

Doc’s Ribhouse had beginning equity of $82,000; net income of $23,000. The company has no other transactions impacting equity. Calculate the ending equity.

$105,000

A company's balance sheet shows: Cash $38,000, Accounts receivable $24,000, Office equipment $58,000, and Accounts payable $25,000. What is the amount of total equity?

$95,000

If assets are $380,000 and liabilities are $197,000, then equity equals:

$183,000

The assets of a company total $724,000; the liabilities, $212,000. What is the amount of equity?

$512,000

If equity is $430,000 and liabilities are $201,000, then assets equal:

631,000

Use the following information as of December 31 to determine equity.

Cash	$ 65,000
Buildings	183,000
Equipment	214,000
Liabilities	149,000

$313,000

Determine the net income of a company for which the following information is available for the month of July.

Employee salaries expense	$ 183,000
Interest expense	13,000
Rent expense	23,000
Consulting revenue	412,000

$193,000

If a company purchases equipment costing $3,500 on credit, the effect on the accounting equation would be:

Assets increase $3,500 and liabilities increase $3,500.

Saddleback Company paid off $35,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Assets decrease $35,000; liabilities decrease $35,000.

If Dallas Company billed a client for $23,000 of consulting work completed, the accounts receivable asset increases by $23,000 and:

Revenue increases $23,000.

Darden has beginning equity of $294,000, total revenues of $80,000, and total expenses of $42,000. The company has no other transactions impacting equity. The company's ending equity is:

$332,000

Rush Company had net income of $163 million and average total assets of $1,850 million. Its return on assets (ROA) is:

8.8%

If a company uses $1,320 of its cash to purchase supplies, the effect on the accounting equation would be:

One asset increases $1,320 and another asset decreases $1,320, causing no effect.

A company's balance sheet shows cash of $41,000, accounts receivable of $47,000, equipment of $84,000, and equity of $89,000. What is the amount of liabilities?

$83,000

A business's source documents:

Identify and describe transactions and events entering the accounting system.

Unearned revenues are:

Transferred to revenue when products and services are delivered.

Identify the account below that is classified as a liability in a company’s chart of account

a.       Cash

b.      Unearned revenues

c.       Salaries Expense

d.      Accounts Receivable

e.       Supplies

Unearned Revenues

A company had the following accounts and balances at December 31:

Account	Debit	Credit
Cash	$ 20,000
Accounts Receivable	6,000
Prepaid Insurance	1,500
Supplies	5,000
Accounts Payable		$ 500
Total Equity		15,200
Service Revenue		20,000
Rent Expense	2,000
Salaries Expense	1,200
Totals	$ 35,700	$ 35,700

Using the information in the table, calculate the company’s reported net income for the period.

$16,800

A company’s list of all ledger accounts with an identification number assigned to each account is called a:

Chart of Accounts

Specter Consulting purchased $7,400 of supplies and paid cash immediately. Which of the following general journal entries will Specter Consulting make to record this transaction?

Debit Supplies 7,400

Credit Cash 7,400

Russell Company collected cash of $400 immediately after providing consulting services to a client. Which of the following general journal entries will Russell Company make to record this transaction?

Debit Cash 400

Credit Consulting Revenue 400

A credit is used to record an increase in which of the following accounts?

a.       Supplies

b.      Cash

c.       Accounts Payable

d.      Wages Expense

e. Prepaid Insurance

Accounts Payable

If cash is received from customers in payment for services that have not yet been performed, the business would record the cash receipt as:

A credit to an unearned revenue account.

Limo Services paid $300 cash to employees for work performed in the current period. Which of the following general journal entries will Limo Services make to record this transaction

Debit Salaries Expense 300

Credit Cash 300

The debt ratio of Braun is 0.9 and the debt ratio of Kemp is 1.0. Based on this information, an investor can conclude:

Kemp has the same dollar amount of total liabilities and total assets.

Identify the item below that would cause the trial balance to not balance?

a.       A $1,020 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash

b.      The purchase of office supplies on account for $3,255 was erroneously recorded in the journal as $2,355 debit to Office Supplies and $2,355 credit to Accounts Payable.

c.       A $60 cash receipt for the performance of a service was not recorded at all.

d.      The purchase of office equipment for $1,250 was posted as a debit to Office Supplies and a credit to Cash for $1,250.

e.       The cash payment of a $770 account payable was posted as a debit to Accounts Payable and a debit to Cash for $770.

The cash payment of a $770 account payable was posted as a debit to Accounts Payable and a debit to Cash for $770.

A credit:

• Always decreases an account.

• Is the right side of a T-account.

• Always increases an account.

• Is the left side of a T-account.

• Always increases asset accounts.

Is the right side of an T-account

Is a debit used to record which of the following?

• A decrease in an asset account.

• A decrease in an expense account.

• An increase in a revenue account.

• An increase in a liability account.

• A decrease to an unearned revenue account

A decrease to an unearned revenue account

Jose Consulting paid $500 cash for utilities for the current month. Determine the general journal entry that Jose Consulting will make to record this transaction.

Debit Utilities Expense 500

Credit Cash 500

Identify the accounts that would normally have balances in the debit column of a business's trial balance.

a)      Assets and expenses.

b)      Assets and revenues.

c)      Revenues and expenses.

d)      Liabilities and expenses.

e)      Liabilities and revenues.

Assets and Expenses

Which of the following is not a source document?

a)    Sales Receipts

b)    Ledgers

c)     Bills from Suppliers

d)    Purchase Orders

e)    Bank Statements

Ledgers

The debt ratio of Company A is 0.31 and the debt ratio of Company B is 0.21. Based on this information, an investor can conclude:

Company B has less financial leverage.

A credit is used to record a decrease in which of the following accounts?

a)      Accounts Payable

b)      Service Revenue

c)      Unearned Revenue

d)      Accounts Receivable

e)      Notes Payable

Accounts Receivable

Edison Consulting received a $300 utilities bill and immediately paid it. Edison's general journal entry to record this transaction will include a:

Debit to Utilities Expense for $300.

The Retained earnings account has a credit balance of $48,000 before closing entries are made. Services revenue for the period is $66,200, wages expense is $45,300, and dividends are $13,400. What is the correct closing entry for the expense accounts?

Debit Income Summary $45,300; credit Wages Expense $45,300.

On April 1, Garcia Publishing Company received $32,580 from Otisco, Incorporated for 36-month subscriptions to several different magazines. The company credited Unearned Revenue for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year?

debit Unearned Revenue, $8,145; credit Subscription Revenue, $8,145.

Fragment Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $975. Fragment collected the entire $7,800 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made on December 31 would be:

A debit to Unearned Revenue and a credit to Rent Revenue for $2,925.

A company had no office supplies available at the beginning of the year. During the year, the company purchased $350 worth of office supplies. On December 31, $115 worth of office supplies remained. How much should the company report as office supplies expense for the year?

$235

A company had services revenues of $59,000 and expenses of $46,000 for the accounting period. Dividends of $6,500 were paid in cash during the same period. Which of the following entries could not be a closing entry?

Debit Income Summary $59,000; credit Services Revenue $59,000.

On November 1, Jasper Company loaned another company $110,000 at a 9% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:

$1,650

On July 1, a company paid the $1,800 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?

$900

On October 1, Vista View Company rented warehouse space to a tenant for $3,400 per month and received $17,000 for five months’ rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Revenue account. The company’s annual accounting period ends on December 31. The Unearned Revenue account balance at the end of December, after adjustment, should be:

$6,800

A company reported net income of $8,000 for October. Its net sales for October were $20,000. Its profit margin is:

40%

For the year ended December 31, a company had services revenue of $202,000 and wages expense of $121,200. Dividends of $40,400 were paid during the year. Which of the following entries could not be a closing entry?

Debit Income Summary $202,000; credit Services Revenue $202,000.

The following information is available for the Noir Detective Agency. After closing entries are posted, what will be the balance in the Retained earnings account?

Net Loss	$ 34,600
Retained earnings	297,500
Dividends	38,800

$224,100.

For the year ended December 31, a company has revenues of $320,000 and expenses of $197,500. The company paid $51,200 in dividends during the year. The balance in the Retained earnings account before closing is $84,000. Which of the following entries would be used to close the dividends account?

Debit Retained Earnings $51,200; credit Dividends $51,200.

On April 1, Otisco, Incorporated paid Garcia Publishing Company $3,060 for 36-month subscriptions to several different magazines. Otisco debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What amount should appear in the Prepaid Subscription account for Otisco, Incorporated after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?

$2295

High Step Shoes had annual revenues of $205,000, expenses of $113,700, and paid dividends of $26,000 during the current year. The retained earnings account before closing had a balance of $317,000. The Net Income for the year is:

91,300

Castillo Services paid K. Castillo, the sole shareholder of Castillo Services, $5,700 in dividends during the current year. The entry to close the dividends account at the end of the year is:

Debit Retained Earnings $5,700; credit Dividends $5,700

The correct adjusting entry for accrued and unpaid employee salaries of $8,300 on December 31 is:

Debit Salary Expense, $8,300; credit Salaries Payable, $8,300.

The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the Retained earnings account?

Net Income	$ 59,500
Retained Earnings	138,500
Dividends	18,800

$179,200.

If Bojana Tax Services' office supplies account balance on March 1 was $850, the company purchased $800 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,000 unused, what is the amount of the adjusting entry for office supplies on March 31?

$650

On December 1, Milton Company borrowed $470,000, at 6% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end?

Debit Interest Expense, $2,350; credit Interest Payable, $2,350.

High Step Shoes had annual revenues of $204,000, expenses of $113,200, and dividends of $25,600 during the current year. The retained earnings account before closing had a balance of $316,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Debit Income Summary $90,800; credit Retained Earnings $90,800

Morgan, Incorporated uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $18,400 was made on credit, 2/10, n/30. The journal entry to record this purchase is:

Debit MI 18032

Credit AP 18032

In calculating the acid-test ratio, which of the following is not considered a quick asset?

• Prepaid expenses.

• Cash.

• Cash equivalents.

• Accounts receivable.

• Short-term investments.

Prepaid Expenses

A company purchases merchandise for $28,500. The seller also offers credit terms of 3/10, n/30. Assuming no returns were made, and that payment was made within the discount period, what is the net cost of the merchandise?

$27645

Frisco Company's Merchandise Inventory account at year-end has a balance of $62,115, but a physical count reveals that only $61,900 of inventory exists. The adjusting entry to record this $215 of inventory shrinkage is:

Debit COGS 215

Credit MI 215

Liquidity problems are likely to exist when a company's acid-test ratio:

Is substantially lower than 1.

P&P Skateboards had net sales of $2,400,000, its cost of goods sold was $1,300,000, and its net income was $800,000. Its gross margin ratio equals:

46%

Which of the following statements regarding sales returns and allowances is false?

Top of Form

• A reduction in the selling price because of damaged merchandise is included in sales returns and allowances.

• Sales returns and allowances do not have an impact on gross profit.

• Sales returns and allowances are recorded in a separate contra-revenue account.

• The Sales Return and Allowance account carries a normal debit balance.

• Sales returns and allowances are closed to the Income Summary account.

Sales returns and allowances do not have an impact on gross profit.

On September 12, Vandelay Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Jepson uses the periodic inventory system and the gross method of accounting for purchases. Jepson pays the invoice on September 18 and takes the appropriate discount. The journal entry that Jepson makes on September 18 is:

Debit AP 5800

Credit Purchase Discounts 116

Credit Cash 5684

In its first year of business, Laker Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Laker expects returns in the following year to equal 8% of sales and 8% of cost of goods sold. The adjusting entry or entries to record the expected sales returns is (are):

Debit SRA 160,000

Credit Sales Refund Payable 160,000

Debit Inventory Returns Estimated 96,000

Credit COGS 96,000

Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The amount of the cash paid on August 26 equals:

8,250

A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

8,386

A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

8,924

Which of the following accounts would be closed at the end of the accounting period with a debit?

Top of Form

• Sales Discounts.

• Sales Returns and Allowances.

• Cost of Goods Sold.

• Wages Expense.

• Sales

Sales

Which of the following statements regarding inventory shrinkage is false?

• Inventory shrinkage refers to the loss of inventory.

• Inventory shrinkage is determined by comparing a physical count of inventory with recorded inventory amounts.

• Inventory shrinkage is recognized by crediting an operating expense.

• Inventory shrinkage is recognized by debiting Cost of Goods Sold.

• Inventory shrinkage can be caused by theft or deterioration.

Inventory shrinkage is recognized by crediting an operating expense.

Which of the following statements related to the multiple-step income statement is false?

• Subtotals for total selling expenses and general and administrative expenses are reported.

• Interest revenue is included with other revenue and gains.

• The first section of the statement reports gross profit.

• Only one total for all expenses is shown.

• Non-operating items are reported separately from operations.

Only one total for all expenses is shown.

On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Fret uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20 and takes the appropriate discount. The amount that Fret receives from Babson on March 20 is:

7056

A company purchased $2,000 of merchandise on August 15 with terms 1/10, n/30. On August 17, it returned $200 worth of merchandise. On August 28, it paid the amount due. The amount of the cash paid on August 28 equals:

1800

On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anderson, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system and the gross method. The journal entry or entries that Shilling will make on May 1 is (are):

Debit AR 5,800

Credit Sales 5800

Debit COGS 4000

Credit MI 4000

Which of the following is not included on a purchase invoice?

Top of Form

• Seller’s name and address.

• Name and address of the purchaser.

• Description of items purchased.

• Arrival date of items ordered.

• Credit terms.

Arrival Date of items ordered

Cushman Company had $840,000 in sales, sales discounts of $12,600, sales returns and allowances of $18,900, cost of goods sold of $399,000, and $288,960 in operating expenses. Net income equals:

120,540

Ace Company reported the following information for the current year:

Sales	$ 415,000
Cost of goods sold:
Beginning inventory	$ 139,500
Cost of goods purchased	278,000
Cost of goods available for sale	417,500
Ending inventory	149,000
Cost of goods sold	268,500
Gross profit	$ 146,500

The beginning inventory balance is correct. However, the ending inventory figure was overstated by $25,000. Given this information, the correct gross profit would be:

$121,500.

Grays Company has the following purchases and sales during the month of August. Using the FIFO perpetual inventory method, what amount will be reported as cost of goods sold for the 12 units that were sold?

Date	Activities	Units Acquired at Cost	Units Sold at Retail
August 1	Beginning inventory	10 units @ $18 = $180
August 3	Purchase	20 units @ $20 = $400
August 6	Sales		12 units sold

220

A company's inventory records report the following:

Date	Activities	Units Acquired at Cost	Units Sold at Retail
August 1	Beginning inventory	15 units @ $34 = $510
August 5	Purchase	10 units @ $35 = $350
August 12	Purchase	20 units @ $36 = $720
August 15	Sales		30 units sold

Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?

540

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

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning inventory	190 units @ $10 = $1,900
May 5	Purchase	260 units @ $12 = $3,120
May 10	Sales		180 units @ $20
May 15	Purchase	140 units @ $13 = $1,820
May 24	Sales		130 units @ $21

3500

A company has the following products in its ending inventory. Compute lower of cost or market for inventory applied separately to each product

Product	Quantity	Cost per Unit	Market per Unit
Product A	10	$ 706	$ 676
Product B	15	$ 506	$ 546
Product C	20	$ 656	$ 681

27470

A company's inventory records indicate the following data for the month of April:

Date	Activities	Units Acquired at Cost	Units Sold at Retail
April 1	Beginning inventory	730 units @ $36 = $26,280
April 7	Purchase	610 units @ $40 = $24,400
April 11	Sale		1,060 units @ $110
April 16	Purchase	530 units @ $44 = $23,320
April 22	Sale		400 units @ $110

The company uses a periodic inventory system. Determine the cost assigned to ending inventory using the specific identification method. Ending inventory consists of 230 units from the April 16 purchase, 80 units from the April 7 purchase, and 100 units from beginning inventory.

16,920

A company has the following purchases and sales during February. Using the FIFO periodic inventory method, what is the cost of the 12 units that are sold?

Date	Activities	Units Acquired at Cost	Units Sold at Retail
February 1	Beginning inventory	10 units @ $28 = $280
February 3	Purchase	20 units @ $30 = $600
February 5	Sales		12 units sold

340

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning inventory	152 units @ $10 = $1,520
May 5	Purchase	222 units @ $12 = $2,664
May 10	Sales		142 units @ $20
May 15	Purchase	102 units @ $13 = $1,326
May 24	Sales		92 units @ $21

$2,610

A company's inventory records report the following in November of the current year:

Date	Activities	Units Acquired at Cost	Units Sold at Retail
November 1	Beginning inventory	5 units @ $58 = $290
November 2	Purchase	10 units @ $60 = $600
November 8	Sales		12 units @ $92
November 12	Purchase	6 units @ $63 = $378

Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 12 units sold?

716

A company's inventory records indicate the following data for the month of January:

Date	Activities	Units Acquired at Cost	Units Sold at Retail
January 1	Beginning inventory	400 units @ $18 = $7,200
January 8	Purchase	380 units @ $20 = $7,600
January 12	Sale		680 units @ $70
January 17	Purchase	440 units @ $22 = $9,680
January 23	Sale		320 units @ $70
January 28	Purchase	500 units @ $24 = $12,000

If the company uses the LIFO perpetual inventory system, what would be the cost of the ending inventory?

16,440

Bedrock Company reported a December 31 ending inventory balance of $411,500. The following additional information is also available:

• The ending inventory balance of $411,500 included $73,100 of consigned inventory for which Bedrock was the consignor.

• The ending inventory balance of $411,500 incorrectly included $24,200 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.

Based on this information, the correct balance for ending inventory on December 31 is:

387,300

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

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning inventory	164 units @ $10 = $1,640
May 5	Purchase	234 units @ $12 = $2,808
May 10	Sales		154 units @ $20
May 15	Purchase	114 units @ $13 = $1,482
May 24	Sales		104 units @ $21

$2,720

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

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning inventory	182 units @ $10 = $ 1,820
May 5	Purchase	252 units @ $12 = $ 3,024
May 10	Sales		172 units @ $20
May 15	Purchase	132 units @ $13 = $ 1,716
May 24	Sales		122 units @ $21

3,650

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual 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	158 units @ $10 = $1,580
May 5	Purchase	228 units @ $12 = $2,736
May 10	Sales		148 units @ $20
May 15	Purchase	108 units @ $13 = $1,404
May 24	Sales		98 units @ $21

2636

Giorgio had cost of goods sold of $9,577 million, ending inventory of $2,245 million, and average inventory of $2,121 million. Its inventory turnover equals:

4.52

Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales:

Date	Activities	Units Acquired at Cost	Units Sold at Retail
August 2	Purchase	10 units @ $44 = $440
August 18	Purchase	15 units @ $46 = $690
August 29	Sales		12 units sold

What is the amount of the cost of goods sold for this sale?

Note: Round average cost per unit to 2 decimal places.

542.40

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

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning inventory	174 units @ $10 = $1,740
May 5	Purchase	244 units @ $12 = $2,928
May 10	Sales		164 units @ $20
May 15	Purchase	124 units @ $13 = $1,612
May 24	Sales		114 units @ $21

3,292

A company has the following purchases and sales during March. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

Date	Activities	Units Acquired at Cost	Units Sold at Retail
March 1	Beginning inventory	10 units @ $21 = $210
March 2	Purchase	10 units @ $23 = $230
March 6	Purchase	6 units @ $26 = $156
March 8	Sales		22 units @ $55

492

A company has the following purchases and sales during October. Using the FIFO periodic inventory method, what is the value of the inventory on October 15 after the sale?

Date	Activities	Units Acquired at Cost	Units Sold at Retail
October 1	Beginning inventory	15 units @ $18 = $270
October 5	Purchase	10 units @ $19 = $190
October 12	Purchase	20 units @ $20 = $400
October 15	Sales		30 units sold

300

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	164 units @ $10 = $1,640
May 5	Purchase	234 units @ $12 = $2,808
May 10	Sales		154 units @ $20
May 15	Purchase	114 units @ $13 = $1,482
May 24	Sales		104 units @ $21

2,768