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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## This note was uploaded on 02/04/2010 for the course PHYSICS 7B taught by Professor Packard during the Spring '08 term at Berkeley.

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

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