mid2-2008 Fall-SOL

mid2-2008 Fall-SOL - UGBA102A Exam 2 Answer Key FALL 2008...

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UGBA102A Exam 2 – Answer Key FALL 2008 MULTIPLE CHOICE: 1. b 2. c 3. d 4. c 5. a 6. c 7. a 8. d 9. b 10. e PROBLEM 1 a. (350 units x $14) + (150 units x $12) + (250 units x $12) = $9,700 b. Ending inventory in units = 200 + 450 + 350 – 250 – 500 = 250 250 units x $12.50 = $3,125 Weighted average cost: (200 units x $11) + (450 units x $12) + (350 units x $14) = $12,500 = $12.50 (200 + 450 + 350 units) 1,000 units c. Cost of goods sold – LIFO $100 million Less: Increase in LIFO reserve 1 Cost of goods sold – FIFO $101 million PROBLEM 2 a. Bad debt expense 10,000 Allowance for doubtful accounts 10,000 ($1,000,000 x .1%) b. Bad debt expense 2,000 Allowance for doubtful accounts 2,000 ($100,000 x 1%) + ($10,000 x 5%) + ($5,000 x 20%) = $2,500
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mid2-2008 Fall-SOL - UGBA102A Exam 2 Answer Key FALL 2008...

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