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mid2-2008+Fall-SOL

mid2-2008+Fall-SOL - $2,500 – $500 = $2,000 c Liability...

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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 $ 99 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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Unformatted text preview: $2,500 – $500 = $2,000 c. Liability – Sales returns 200 Accounts receivable 200 Page 1 of 2 UGBA102A Exam 2 – Answer Key FALL 2008 PROBLEM 3 a. $1,450 + [($100 x (1 - .30)] = 16.0% [($5,100 + $4,100) + ($5,300 + $4,500)] / 2 b. $4,500 / $5,300 = 84.9% c. $7,500 = 20 times ($400 + $350) /2 d. $35 / $2 = 17.5 PROBLEM 4 a. Year 1: ($400,000 / 20 years) x 2 = $40,000 Year 2: (($400,000 – $40,000) / 20 years) x 2 = $36,000 b. Accumulated depreciation ($45,000 – $5,000) x 8 years / 10 years 32,000 Loss on disposal of asset 13,000 Asset 45,000 c. Repair and maintenance expense 2,000 Cash 2,000 Page 2 of 2...
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