Question

QUESTION 18 4 pd The Busy Baker Bakery (BBB) just began business and made the following four inventory purchases for a particular item in August August 01: 150 units, Total Cost = $1,040 • August 10: 200 units, Total Cost = $1,560 • August 15: 200 units, Total Cost = $1,680 August 28: 150 units, Total Cost = $1,320 A physical count of merchandise inventory on August 31 reveals that there are 210 units on hand. Using the FIFO periodic inventory method, the item ending inventory valuation for August is closest to O a $1,456 O b. $1,848 O c 51,824 O d. $1,508 QUESTION 19 A budget O a. helps in identifying problems and uncertainties. O b. is the qualitative expression of a proposed plan of action by management O c. is an aid to coordinating what needs to be done to execute a plan O d. promotes production automation

Answer 1

X2= Book1 - Microsoft Excel File Home Insert Formulas Data Review View ? ? x Page Layout fi P23 А B с D E F G H 1 J K L M N 0 P Q R S T 1 2018 Q7 Option D is correct Under FIFO Method, it is assumed that Goods that purchased first will be sold Fisrt That means Inventories are Left from Latest Purchases 3 4 Bank Loan is non current liability, Taking a loan will increase cash & non current liability 5 6 7 8 Inventory = 210 Units which is from the purchases 28-Aug 150 units 15-Aug 60 Units Payment to supplier decrese cash& decrease current Liability Payment from customer increase cash & decrease current asset Purchasing goods on credit will increase Purchase & Increase Curret liability 9 10 Cost Per unit 28 August = $1320 / 150 units = $8.8 per unit 15 August = $1680 / 200 Units = $8.4 Per Unit Q8 Current Ratio = 11 12 13 Closing Inventory = Current Assets Current Liabilities Accounts Receivable + Inventories + Cash Accounts Payable $50000 + $10000 + $20000 $30000 2.67 times 14 15 16 150 units $ 8.80 $1,320.00 60 units $ $ 8.40 $ 504.00 17 18 Total Value $ 1,824.00 Option A is correct 19 20 Option C is correct 21 22 Q19 23 Budget is a planning Exercise, it is an aid to coordinating what need to be done to execute a plan O 24 25 26 Option C is correct 27 28 29 30 K™ Sheet1 Ready Sheet2 Sheet3 u 100% - + 11 Type here to search o е п o X D 4x ENG 08:00 24-09-2020 6

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