ACC 422 Final Exam Wileyplus

Topics: Depreciation, Inventory, 1979 Pages: 7 (1787 words) Published: September 4, 2014
ACC 422 Final Exam Wileyplus

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Question 1
Kraft Enterprises owns the following assets at December 31, 2012.   Cash in bank–savings account  67, 516Checking account balance 26,445 Cash on Hand9,478Postdated checks753
Cash refund due from IRS40,324Certificates of deposit(180 day)94,754 What amount should be reported as cash?  

Question 2
Presented below is information related to Rembrandt Inc.'s inventory.  Per UnitsSkisBootsParkas
Historical Cost$254.22$141.83$70.91
Selling Price290.35194.0198.68
Cost to distribute25.4210.703.35
Current replacement cost271.61140.4968.24
Normal profit margin42.8238.8028.43
Determine the following

a). the two limits to market value (e.g., the ceiling and the floor) that should be used in the lower of cost or market computation for skis; (Round answers to 2 decimal places, e.g. 20.25.) 

b). the cost amount that should be used in the lower of cost or market comparison of boots; (Round answer to 2 decimal places, e.g. 20.25.) 

c). the market amount that should be used to value parkas on the basis of the lower of cost or market. (Round answer to 2 decimal places, e.g. 20.25.) 

Question 3  
Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 74 units that cost $44 each. During June, the company purchased 222 units at $44 each, returned 9 units for credit, and sold 185 units at $74 each. Journalize the June transactions.  

Question 4  
Amsterdam Company uses a periodic inventory system. For April, when the company sold 700 units, the following information is available.  
UnitsUnit CostTotal Cost
April 1 inventory250$16$4,000
April 15 purchase40019 7,600
April 23 purchase35021 7,350
1,000$18,950
Compute the April 30 inventory and the April cost of goods sold using the average cost method. (Round computations for cost per unit to 2 decimal places, e.g. 10.25 and answers to 0 decimal places, e.g. 2,250.) 

Question 5  
Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is available.  
UnitsUnit CostTotal Cost
April 1 inventory250$13$3,250
April 15 purchase40016 6,400
April 23 purchase35017 5,950
1,000$15,600
Compute the April 30 inventory and the April cost of goods sold using the FIFO method.  

Question 6  
(FIFO, LIFO, Average Cost Inventory) 
Esplanade Company was formed on December 1, 2011. The following information is available from Esplanade's inventory records for Product BAP.  
UnitsUnit Cost
January 1, 2012(beginning inventory)768$8.00
Purchases:
January 5, 20121,5369.00
January 25, 20121,66410.00
February 16, 20121,02411.00
March 26, 2012 76812.00
A physical inventory on March 31, 2012, shows 2,048 units on hand. Prepare schedules to compute the ending inventory at March 31, 2012, under each of the following inventory methods. Assume Esplanade Company uses the periodic inventory method.  

Question 7  
Floyd Corporation has the following four items in its ending inventory ItemCostReplacement Cost(NRV)NRV- Normal Profit Marging Jokers$2,236$2,292$2,348$1,789
Penguins5,5905,7025,5344,584
Riddlers4,9195,0874,2824,137
Scarecrows3,5783,3434,2823,432

Question 8
Kumar Inc. uses a perpetual inventory system. At January 1, 2013, inventory was $241,606 at both cost and market value. At December 31, 2013, the inventory was $322,894 at cost and $303,701 at market value. Prepare the necessary December 31 entry under: (a)

the cost of goods sold method
(b) the loss method

Question 9
Boyne Inc. had beginning inventory of $15,000 at cost and $25,000 at retail. Net purchases were $150,000 at cost and $212,500 at retail. Net...
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