Feb 27, 2008 Anderson ECON 136A MIDTERM 2 VERSION 1 Name

Feb 27, 2008 Anderson ECON 136A MIDTERM 2 VERSION 1 Name QUESTION NUMBER 26 HAS A FILL IN THE BLANK PORTION- BE SURE TO FILL THOSE IN AND TURN THIS EXAM IN WITH YOUR SCANTRON AND BLUE BOOK!!! WRITE YOUR VERSION # ON YOUR SCANTRON PLEASE. Complete Questions 1-25 on your scantron, and the rest in your blue books (except for the fill in portion of 26 as noted above) 1. In a period of rising prices, the inventory method which tends to give the highest reported inventory is a. moving average. b. FIFO. c. weighted-average. d. LIFO. 2. XYZ, Inc. ships goods FOB shipping point which are in transit at the end of the year. As of the end of the year, XYZ should do what with respect to this inventory? a. Include in inventory. b. Exclude from inventory. c. Include in inventory until the customer pays the invoice. d. Include in inventory until the bill from the trucking company is received. 3. A company employs the percentage of sales method for estimating the allowance for doubtful accounts. Using this method, they estimated during the year that the bad debt expense is $100,000. Also during the year, Management updated their estimate derived from the percentage of sales method and determined it appropriate to increase the allowance for doubtful accounts by $10,000 and subsequently wrote-off $5,000 of uncollectible balances. The proper amount for them to include as bad debt expense during the year is: a. $105,000 b. $115,000 c. $110,000 d. $65,000 4. To produce an inventory valuation which approximates the lower of cost or market using the conventional retail inventory method, the computation of the ratio of cost to retail should a. include markups and markdowns. b. include markups but not markdowns. c. include markdowns but not markups. d. ignore both markups and markdowns.

MIDTERM 2 v. 1--Page 2 ------------------------------ James Co. has the following data related to an item of inventory: Inventory, March 1 200 units @ $4.20 Purchase, March 7 700 units @ $4.40 Purchase, March 16 140 units @ $4.50 Inventory, March 31 300 units 5. The value assigned to ending inventory if James uses LIFO is a. $1,280. b. $1,334. c. $1,350. d. $1,260. 6. An inventory method which is designed to approximate inventory valuation at the lower of cost or market is a. first-in, first-out. b. last-in, first-out. c. specific identification. d. conventional retail method. 7. When reconciling cash from the bank balance to the general ledger balance, which of the following items will appear as an addition to the bank balance: a. Deposits in transit. b. Bank charges not recorded by the company. c. Both bank charges not recorded by the company AND deposits in transit. d. Outstanding checks. 8. ABC, Inc. sells goods on account with terms 2/10 n 30. The full invoice amount is $1,000,000 and ABC employs the net method. If they receive cash of $49,000 from customers 5 days after the sale, what amount should credited to accounts receivable? a. $49,000 b. $50,000 c. $20,408 d. $1,000 9. Inventory was overstated at the beginning of the year by $10,000 and was understated by $1,000 at the end of the year. During the year, the accounting system recorded cost of sales in the amount of $1,000,000. The proper amount to report under GAAP for COGS for the year is: a. $990,000 b. $1,000,000 c. none of these d. $989,000

MIDTERM 2 v. 1--Page 3 10. We buy an assortment of overstock items. We received 5,000 units of product A and 5,000 units of product B. The purchase price was not allocated between the two product types and we paid a total of $10,000 for both. We expect to sell product A for $2.00/ unit and product B for $1.00/ unit. What is the per unit cost under GAAP (when doing your computation, round to two decimals): a. $1.34/ unit for product A and $.66/ unit for product B. b. $1.00/ unit for product A and B. c. $1.50/ unit for product A and $.55/ unit for product B. d. $2.00/ unit for product A and $0.00/ unit for product B. 11. The bank lent XYZ, Inc. $1.5 million and XYZ agreed to maintain a cash reserve of at least $100,000 at all times. XYZ's general ledger shows cash in the amount of $400,000, which includes checks outstanding of $25,000, and deposits in transit of $30,000. In addition, they hold $50,000 of certificates of deposit (CD's) at the bank with an original maturity of 6 months, 90 day treasury bills of $5,000, and stock in AOL at $45,000. Finally, the bank charged XYZ a fee of $500 which XYZ has not yet recorded. XYZ presents cash & cash equivelants on their balance sheet. How much should XYZ report as cash and cash equivelants on their balance sheet? a. $304,500 b. $399,500 c. $354,500 d. $404,500 12. Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense? a. A percentage of sales not adjusted for the balance in the allowance b. A percentage of sales adjusted for the balance in the allowance c. An amount derived from aging accounts receivable and not adjusted for the balance in the allowance d. A percentage of accounts receivable not adjusted for the balance in the allowance 13. Which of the following is NOT considered cash for financial reporting purposes? a. Petty cash funds and change funds b. Coin, currency, and available funds c. Postdated checks and I.O.U.'s d. Money orders, certified checks, and personal checks

MIDTERM 2 v. 1--Page 4 14. Inventory is recorded under LIFO by the accounting system at a cost of $4,000. The inventory is expected to sell for $5,000, it would cost $4,500 to replace, $200 in commissions to sell, and has a normal profit margin of 20%. Which of the following is true of this inventory? a. The designated market value is $5,000 and the inventory should be reported on the balance sheet at $4,000. b. The designated market value is $4,500 and the inventory should be reported on the balance sheet at $3,800. c. The designated market value is $4,500 and the inventory should be reported on the balance sheet at $4,000. d. The designated market value is $5,000 and the inventory should be reported on the balance sheet at $3,800. 15. When using a periodic inventory system: a. Cycle counts should be taken to verify the inventory recorded by the accounting system. b. Physical counts are only required if it is a publicly traded entity. c. A physical count of the inventory must be taken in order to determine the cost of goods sold and ending inventory balance. d. Shrinkage will not be considered by the accounting system, and therefore a physical inventory count should be made. 16. A company using the percentage of sales method has gone through its normal process of allowing for doubtful accounts, and written off certain accounts. Subsequently one of the balances they wrote-off has been paid by the customer! This should: a. Increase the bad debt expense b. Increase the allowance for bad debts c. None of these. d. Reduce the allowance for bad debts ------------------------------ Trent Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory $234,000 $ 366,000 Purchases 884,000 1,246,000 Freight-in 16,000 Employee discounts 6,000 Net markups 44,000 Net Markdowns 60,000 Sales 1,170,000

MIDTERM 2 v. 1--Page 5 17. The approximate cost of the ending inventory by the conventional retail method is a. $294,000. b. $284,760. c. $287,700. d. $307,440. 18. Which of the following are required inventory disclosures: a. The inventory costing method used. b. All of these. c. Unusual or significant inventory financing arrangements. d. The composition of the ending inventory. 19. If inventory is overstated, then: a. Only balance sheet ratios will be impacted. b. Gross margin and net income will both be over stated as well. c. Only income ratios will be impacted. d. Gross margin and net income will both be understated. 20. Howe Company's accounting records indicated the following information: Inventory, 1/1/04 $ 300,000 Purchases during 2004 1,500,000 Sales during 2004 2,000,000 A physical inventory taken on December 31, 2004, resulted in an ending inventory of $350,000. Howe's gross profit on sales has remained constant at 30% in recent years. Howe suspects some inventory may have been taken by a new employee. At December 31, 2004, what is the estimated cost of missing inventory? a. $100,000. b. $50,000. c. $150,000. d. $75,000. 21. An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is a. base stock. b. FIFO. c. weighted-average. d. LIFO. 22. Which statement is true about the gross profit method of inventory valuation? a. It may be used by auditors as an acceptable inventory valuation for GAAP financial statements. b. It may be used to estimate inventories for interim statements. c. None of these. d. It may be used to estimate inventories for GAAP financial statements.

MIDTERM 2 v. 1--Page 6 23. The following information applied to Flynn, Inc. for 2004: Merchandise purchased for resale $400,000 Freight-in 16,000 Freight-out 10,000 Purchase returns 4,000 Flynn's 2004 inventoriable cost was a. $412,000. b. $400,000. c. $422,000. d. $406,000. 24. When using a periodic inventory system: a. Purchases made before a count occurs should be recorded directly as inventory and adjusted for inventory sold at the time that the inventory count is made. b. Only cycle counts are required to determine if the accounting system is working. c. Shrinkage is not factored into COGS d. Purchases made before a count occurs should be recorded as purchases until the count is made and then moved over to inventory before the adjustment for COGS is made. 25. According to many accountants and auditors, controls over cash are critical. Consequently,: a. A bank reconciliation need only be performed if a company suspects fraud. b. Bank reconciliations serve as an important component of a company's internal control environment. c. A bank reconciliation is only necessary to gauge whether the bank has made a mistake in their records. d. Bank reconciliations serve only to reconcile the book cash balance to the bank balance and are not a component of the internal control environment.

26. XYZ has the following summary trial balance as of, and for the year ended 12/31/06 before any of the activity noted below is recorded, and before closing out net income to retained earnings: DR./ <CR> DR./<CR> Cash 5,000 Available for sale securities 12,000 Accounts receivable 15,000 Inventory 40,000 Tax effect - Accounts payable &accrued expenses (35,000) Common stock (2,000) Accumulated other comprehensive income (4,000) Retained earnings (15,000) Sales (300,000) COGS 210,000 Selling general & administrative expense 74,000 - Hint- what should this # be? 1. 2. 3. 4. 5. 6. 7. 8. Record the Journal entry for each of the following items in your blue book. Assume that XYZ uses a PERIODIC inventory method and uses "tax effect" account for all items requiring net of tax treatment & 35% tax rate. Purchase $10,000 of inventory on credit, terms 2/10n30, using the net method. Sell $20,000 of goods on credit, terms 2/10n30, using the gross method. Collect $4,900 in cash for accounts receivable within the discount period. Pay $9,800 in cash for accounts payables within the discount period. The discount period for both the payables and receivables expires. All remaining accounts receivable and payable from 1 & 2 above are collected and received, respectively. Inventory count is performed resulting in $5,000 of inventory on hand. A loss of $5,000 is experienced on available for sale securities. Determine what the ending balance in each account should be after the effects of each of your above entries. Also, close-out the current income statement accounts to retained earnings. Provide the ending balance in the space provided above. 27. Based on the following facts, please compute the ending inventory using only the Retail LIFO method. ROUND PERCENTAGES TO TWO DECIMALS IN YOUR COMPUTATIONS (I.E 50.23567%= 50.24%) Cost Retail Beginning Inventory 198,800 280,000 Purchases 1,563,900 2,400,000 Markups, net 12,000 Markdowns, net (6,000) Net sales (2,200,000) Ending inventory at retail 486,000 28. Ubetcha Inc. utilizes dollar value LIFO and has only one "pool". The following information pertains to their computation of the inventory balance as of December 31, 2006: Inventort at Price Dec. 31 Year-end prices Index 2003 1,000,000 100 2004 1,250,000 110 2005 1,500,000 115 2006 1,450,000 120 2007 1,200,000 130 Compute the ending inventory using "dollar value LIFO" as of December 31, 2003, 2004, 2005, 2006 & 2007.

MIDTERM 2 v. 1--Page 7 Feb 27, 2008 ANSWER KEY Anderson ECON 136A +-------+------+--------+------+--------+--------+--------+--------+------+ Text Bank Exam Ques Diff Lrng Chapter Ref Question Answer Type Cat Lvl Obj Page +-------+------+--------+------+--------+--------+--------+--------+------+ 8 26 1 b MChoice C 5 8 76 2 b MChoice 7 75 3 c MChoice 9 21 4 b MChoice C 6 8 42 5 a MChoice P 5 9 17 6 d MChoice C 6 7 61 7 c MChoice 7 76 8 a MChoice 8 78 9 d MChoice 9 60 10 a MChoice 7 74 11 a MChoice 7 12 12 a MChoice C 5 7 1 13 c MChoice C 1 9 58 14 c MChoice 8 67 15 c MChoice 7 67 16 c MChoice 9 47 17 c MChoice P 6 9 59 18 b MChoice 8 69 19 b MChoice 9 54 20 b MChoice A 5 8 22 21 b MChoice C 5 9 15 22 b MChoice C 5 8 54 23 a MChoice A 2 8 72 24 d MChoice 7 54 25 b MChoice +-------------------------------------------------------------------------+ * Multiple Choice Foils are Jumbled * Test Questions are Scrambled

MIDTERM 2 v. 1--Page 8 Feb 27, 2008 5. (200 x $4.20) + (100 x $4.40) = $1,280. 11. 400,000-100,000(restricted)+5,000-500=304,500 17. $420,000 x.685 = $287,700. 20. $2,000,000 x.70 = $1,400,000 (COGS) $300,000 + $1,500,000 - $1,400,000 - $350,000 = $50,000. 23. $400,000 + $16,000 - $4,000 = $412,000.

#26- SOLUTION 1 Purchases 9,800 Accounts payable 9,800 2 Accounts receivable 20,000 Sales 20,000 3 Cash 4,900 Accounts receivable 5,000 Sales discounts taken (or just sales) 100 4 Accounts payable 9,800 Cash 9,800 5 No entry, all payables paid within discount period, and receiavbles already recorded "gross" 6 Cash 15,000 Accounts receivable 15,000 (note payables already paid in full) 7 Inventory 9,800 Inventory at start 40,000 Purchases 9,800 Puchases 9,800 COGS 44,800 Ending (5,000) Inventory 44,800 COGS 44,800 8 Other comprehensive loss 3,250 Tax effect 1,750 Available for sale securities 5,000 DR./ <CR> DR./<CR> Cash 5,000 15,100 Available for sale securities 12,000 7,000 Accounts receivable 15,000 15,000 Inventory 40,000 5,000 Tax effect - 1,750 Accounts payable &accrued expenses (35,000) (35,000) Common stock (2,000) (2,000) Accumulated other comprehensive income (4,000) (750) Retained earnings (15,000) (6,100) Sales (300,000) - COGS 210,000 - Selling general & administrative expense 74,000 - - -

27. SOLUTION - Cost Retail Beginning Inventory 198,800 280,000 RATIO 71.00% Purchases 1,563,900 2,400,000 Markups, net - 12,000 Markdowns, net - (6,000) 1,563,900 2,406,000 RATIO 65.00% Net sales - (2,200,000) Ending inventory at retail - 486,000 - Ending retail 486,000 Ratio Cost Beginning layer 280,000 71.00% 198,800 New layer 206,000 65.00% 133,900 332,700 28-- SOLUTION Inventort at Price Inventory at Base Yr Appropr. Base Yr ANSWER 31-Dec Year-end prices Index Base-Year Price Change Factor Layer YE Balance 2003 1,000,000 100 1,000,000 1,000,000 100 1,000,000 1,000,000 2004 1,250,000 110 1,136,364 136,364 110 150,000 1,150,000 2005 1,500,000 115 1,304,348 167,984 115 193,182 1,343,182 2006 1,450,000 120 1,208,333 (96,014) 115 (110,417) 1,232,765 2007 1,200,000 130 923,077 (285,256) unnecessary 923,077

Feb 27, 2008 Anderson ECON 136A MIDTERM 2 VERSION 2 Name QUESTION NUMBER 26 HAS A FILL IN THE BLANK PORTION- BE SURE TO FILL THOSE IN AND TURN THIS EXAM IN WITH YOUR SCANTRON AND BLUE BOOK!!! WRITE YOUR VERSION # ON YOUR SCANTRON PLEASE. Complete Questions 1-25 on your scantron, and the rest in your blue books (except for the fill in portion of 26 as noted above) 1. Inventory was overstated at the beginning of the year by $10,000 and was understated by $1,000 at the end of the year. During the year, the accounting system recorded cost of sales in the amount of $1,000,000. The proper amount to report under GAAP for COGS for the year is: a. $989,000 b. none of these c. $990,000 d. $1,000,000 2. When reconciling cash from the bank balance to the general ledger balance, which of the following items will appear as an addition to the bank balance: a. Outstanding checks. b. Both bank charges not recorded by the company AND deposits in transit. c. Deposits in transit. d. Bank charges not recorded by the company. ------------------------------ James Co. has the following data related to an item of inventory: Inventory, March 1 200 units @ $4.20 Purchase, March 7 700 units @ $4.40 Purchase, March 16 140 units @ $4.50 Inventory, March 31 300 units 3. The value assigned to ending inventory if James uses LIFO is a. $1,260. b. $1,350. c. $1,280. d. $1,334.

MIDTERM 2 v. 2--Page 2 4. A company employs the percentage of sales method for estimating the allowance for doubtful accounts. Using this method, they estimated during the year that the bad debt expense is $100,000. Also during the year, Management updated their estimate derived from the percentage of sales method and determined it appropriate to increase the allowance for doubtful accounts by $10,000 and subsequently wrote-off $5,000 of uncollectible balances. The proper amount for them to include as bad debt expense during the year is: a. $65,000 b. $110,000 c. $105,000 d. $115,000 5. A company using the percentage of sales method has gone through its normal process of allowing for doubtful accounts, and written off certain accounts. Subsequently one of the balances they wrote-off has been paid by the customer! This should: a. Increase the allowance for bad debts b. None of these. c. Reduce the allowance for bad debts d. Increase the bad debt expense 6. The bank lent XYZ, Inc. $1.5 million and XYZ agreed to maintain a cash reserve of at least $100,000 at all times. XYZ's general ledger shows cash in the amount of $400,000, which includes checks outstanding of $25,000, and deposits in transit of $30,000. In addition, they hold $50,000 of certificates of deposit (CD's) at the bank with an original maturity of 6 months, 90 day treasury bills of $5,000, and stock in AOL at $45,000. Finally, the bank charged XYZ a fee of $500 which XYZ has not yet recorded. XYZ presents cash & cash equivelants on their balance sheet. How much should XYZ report as cash and cash equivelants on their balance sheet? a. $354,500 b. $399,500 c. $304,500 d. $404,500 7. If inventory is overstated, then: a. Only income ratios will be impacted. b. Gross margin and net income will both be over stated as well. c. Gross margin and net income will both be understated. d. Only balance sheet ratios will be impacted. 8. Which of the following is NOT considered cash for financial reporting purposes? a. Postdated checks and I.O.U.'s b. Petty cash funds and change funds c. Money orders, certified checks, and personal checks d. Coin, currency, and available funds

MIDTERM 2 v. 2--Page 3 9. To produce an inventory valuation which approximates the lower of cost or market using the conventional retail inventory method, the computation of the ratio of cost to retail should a. include markdowns but not markups. b. include markups but not markdowns. c. include markups and markdowns. d. ignore both markups and markdowns. 10. The following information applied to Flynn, Inc. for 2004: Merchandise purchased for resale $400,000 Freight-in 16,000 Freight-out 10,000 Purchase returns 4,000 Flynn's 2004 inventoriable cost was a. $422,000. b. $400,000. c. $406,000. d. $412,000. 11. Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense? a. An amount derived from aging accounts receivable and not adjusted for the balance in the allowance b. A percentage of sales adjusted for the balance in the allowance c. A percentage of sales not adjusted for the balance in the allowance d. A percentage of accounts receivable not adjusted for the balance in the allowance 12. In a period of rising prices, the inventory method which tends to give the highest reported inventory is a. weighted-average. b. FIFO. c. moving average. d. LIFO. ------------------------------ Trent Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory $234,000 $ 366,000 Purchases 884,000 1,246,000 Freight-in 16,000 Employee discounts 6,000 Net markups 44,000 Net Markdowns 60,000 Sales 1,170,000

MIDTERM 2 v. 2--Page 4 13. The approximate cost of the ending inventory by the conventional retail method is a. $307,440. b. $287,700. c. $284,760. d. $294,000. 14. An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is a. weighted-average. b. FIFO. c. LIFO. d. base stock. 15. Which of the following are required inventory disclosures: a. All of these. b. The inventory costing method used. c. The composition of the ending inventory. d. Unusual or significant inventory financing arrangements. 16. We buy an assortment of overstock items. We received 5,000 units of product A and 5,000 units of product B. The purchase price was not allocated between the two product types and we paid a total of $10,000 for both. We expect to sell product A for $2.00/ unit and product B for $1.00/ unit. What is the per unit cost under GAAP (when doing your computation, round to two decimals): a. $1.50/ unit for product A and $.55/ unit for product B. b. $1.00/ unit for product A and B. c. $1.34/ unit for product A and $.66/ unit for product B. d. $2.00/ unit for product A and $0.00/ unit for product B. 17. XYZ, Inc. ships goods FOB shipping point which are in transit at the end of the year. As of the end of the year, XYZ should do what with respect to this inventory? a. Include in inventory until the customer pays the invoice. b. Exclude from inventory. c. Include in inventory. d. Include in inventory until the bill from the trucking company is received. 18. When using a periodic inventory system: a. Shrinkage will not be considered by the accounting system, and therefore a physical inventory count should be made. b. Cycle counts should be taken to verify the inventory recorded by the accounting system. c. A physical count of the inventory must be taken in order to determine the cost of goods sold and ending inventory balance. d. Physical counts are only required if it is a publicly traded entity.

MIDTERM 2 v. 2--Page 5 19. Inventory is recorded under LIFO by the accounting system at a cost of $4,000. The inventory is expected to sell for $5,000, it would cost $4,500 to replace, $200 in commissions to sell, and has a normal profit margin of 20%. Which of the following is true of this inventory? a. The designated market value is $4,500 and the inventory should be reported on the balance sheet at $4,000. b. The designated market value is $5,000 and the inventory should be reported on the balance sheet at $4,000. c. The designated market value is $5,000 and the inventory should be reported on the balance sheet at $3,800. d. The designated market value is $4,500 and the inventory should be reported on the balance sheet at $3,800. 20. An inventory method which is designed to approximate inventory valuation at the lower of cost or market is a. first-in, first-out. b. conventional retail method. c. last-in, first-out. d. specific identification. 21. When using a periodic inventory system: a. Purchases made before a count occurs should be recorded as purchases until the count is made and then moved over to inventory before the adjustment for COGS is made. b. Shrinkage is not factored into COGS c. Purchases made before a count occurs should be recorded directly as inventory and adjusted for inventory sold at the time that the inventory count is made. d. Only cycle counts are required to determine if the accounting system is working. 22. According to many accountants and auditors, controls over cash are critical. Consequently,: a. Bank reconciliations serve only to reconcile the book cash balance to the bank balance and are not a component of the internal control environment. b. A bank reconciliation need only be performed if a company suspects fraud. c. Bank reconciliations serve as an important component of a company's internal control environment. d. A bank reconciliation is only necessary to gauge whether the bank has made a mistake in their records.

MIDTERM 2 v. 2--Page 6 23. Howe Company's accounting records indicated the following information: Inventory, 1/1/04 $ 300,000 Purchases during 2004 1,500,000 Sales during 2004 2,000,000 A physical inventory taken on December 31, 2004, resulted in an ending inventory of $350,000. Howe's gross profit on sales has remained constant at 30% in recent years. Howe suspects some inventory may have been taken by a new employee. At December 31, 2004, what is the estimated cost of missing inventory? a. $75,000. b. $100,000. c. $50,000. d. $150,000. 24. ABC, Inc. sells goods on account with terms 2/10 n 30. The full invoice amount is $1,000,000 and ABC employs the net method. If they receive cash of $49,000 from customers 5 days after the sale, what amount should credited to accounts receivable? a. $49,000 b. $1,000 c. $50,000 d. $20,408 25. Which statement is true about the gross profit method of inventory valuation? a. It may be used to estimate inventories for GAAP financial statements. b. It may be used by auditors as an acceptable inventory valuation for GAAP financial statements. c. It may be used to estimate inventories for interim statements. d. None of these.

MIDTERM 2 v. 2--Page 7 Feb 27, 2008 ANSWER KEY Anderson ECON 136A +-------+------+--------+------+--------+--------+--------+--------+------+ Text Bank Exam Ques Diff Lrng Chapter Ref Question Answer Type Cat Lvl Obj Page +-------+------+--------+------+--------+--------+--------+--------+------+ 8 78 1 a MChoice 7 61 2 b MChoice 8 42 3 c MChoice P 5 7 75 4 b MChoice 7 67 5 b MChoice 7 74 6 c MChoice 8 69 7 b MChoice 7 1 8 a MChoice C 1 9 21 9 b MChoice C 6 8 54 10 d MChoice A 2 7 12 11 c MChoice C 5 8 26 12 b MChoice C 5 9 47 13 b MChoice P 6 8 22 14 b MChoice C 5 9 59 15 a MChoice 9 60 16 c MChoice 8 76 17 b MChoice 8 67 18 c MChoice 9 58 19 a MChoice 9 17 20 b MChoice C 6 8 72 21 a MChoice 7 54 22 c MChoice 9 54 23 c MChoice A 5 7 76 24 a MChoice 9 15 25 c MChoice C 5 +-------------------------------------------------------------------------+ * Multiple Choice Foils are Jumbled * Test Questions are Scrambled

MIDTERM 2 v. 2--Page 8 Feb 27, 2008 3. (200 x $4.20) + (100 x $4.40) = $1,280. 6. 400,000-100,000(restricted)+5,000-500=304,500 10. $400,000 + $16,000 - $4,000 = $412,000. 13. $420,000 x.685 = $287,700. 23. $2,000,000 x.70 = $1,400,000 (COGS) $300,000 + $1,500,000 - $1,400,000 - $350,000 = $50,000.