Reference no: EM132178822

Questions -

Q1. X Company uses a periodic inventory system. The following units of a particular item were purchased and sold during the period:

Beginning inventory 50 units at $15

First sale 35 units

First purchase 20 units at $16

Second sale 30 units

Second purchase 15 units at $17

What are the unit cost(s) of the remaining units on hand at the end of the period as determined by the FIFO costing method?

a. $15

b. $16

c. $17

d. $15 and $16

e. $16 and $17

Q2. M Company manufactures tables. At the beginning of December, the beginning work in process inventory was 300 units, which were 40% complete for conversion. 5,000 units were started in December. At the end of December, the ending work in process is 500 units, which are 50% complete for conversion. Using the FIFO process costing method, what are the December equivalent units for conversion?

a. 4,500

b. 4,930

c. 5,370

d. 5,430

e. 5,800

Q3. Office supplies of $7,500 were received and properly recorded in the general ledger. At the end of the accounting period, $3,500 of office supplies are still on hand. The adjusting entry will require which of the following?

a. Debit Office Supplies Expense and credit Office Supplies for $3,500

b. Debit Office Supplies Expense and credit Cash for $3,500

c. Debit Office Supplies and credit Accounts Payable for $4,000

d. Debit Office Supplies Expense and credit Accounts Payable for $3,500

e. Debit Office Supplies Expense and credit Office Supplies for $4,000