Reference no: EM132908617
Question -
Q1. The Boy Bike Co. uses the Perpetual inventory system had the following February 2021 activity with their bikes inventory:
Beginning inventory - 13 bikes @ cost of $174
February 3rd purchase - 8 bikes @ cost of $182
February 7th purchase - 20 bikes @ cost of $188
February 10th purchase - 7 @ $192
February 18th purchase - 10 bikes @ $138
On February 15th, the Boy Bike Co. sold 44 bikes for $360 each.
(a) Calculate the Cost of Goods Sold for the February 15th sale using FIFO?
(b) What is the ending inventory after the February 15th sale using FIFO?
Q2. To properly maintain controls over cash, companies must reconcile their Checking accounts on at least a monthly basis. And, consideration should be given to reconciling them on a more frequent basis depending on the volumes and amounts.
(a) Explain how each of these timing differences occurs?
a. Deposits in Transit
b. Charges to the company for services rendered
c. Non-Sufficient Funds (NSF) checks
(b) How does each of the 3 impact the Company's Cash account, if it is impacted?