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Midwest Office Products uses the retail method to estimate ending inventory in its monthly financial statements....

Midwest Office Products uses the retail method to estimate ending inventory in its monthly financial statements. The following information is available for the month ended May 31:

Cost Retail
Sales $ 300,000
Inventory, May 1 $ 137,400 $ 198,000
Net purchases $ 184,800 $ 273,000
Goods available for sale $ 322,200 $ 471,000



Refer to the information above. Estimate the cost of the May 31 inventory using the retail method.

Select one:

a. $116,964

b. $137,400

c. $150,425

d. $204,000

2.

The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.



What is the "adjusted cash balance" at June 30?

Select one:

a. $3,900.

b. $3,093.

c. $7,600.

d. $2,400.

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Answer #1

Co st atio beginning inver Nat puacha ses 131,400 sale 411,000 Cast to Retai otio o- 684 322,200 41,ooo cost รี่ good aai lable fo aui lable. Po S 22, 200 | 411,000 Sa ARSS: sales Endin invemlor cost totaiatio Endin nv o.624. 146,964 Inbefafl method is 116,964

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