ACCT1000 Quiz – Ch6 & 7

NameSection No.
Class No.

Student no.: - - - Date:

Problem No.1 – Ch6 Cost Flow Assumption

Thompson International sells stereo amplifying system. Thompson uses perpetual inventory system to
record its inventory. Below is the information relating to Thompson’s purchases and sales transactions of its
stereo systems during October 2023.

Date Explanation Units Unit Cost Total Cost

Oct 1 Inventory 100 $ 100 $ 10,000
Oct 10 Purchases 200 110 22,000
Oct 18 Purchases 300 120 36,000
Totals 600 $68,000

Date Explanation Units Unit Price Total Revenue

Oct 7 Sale 80 $150 $ 12,000
Oct 27 Sale 450 180 81,000
Totals 530 $93,000
Instructions:
a. Compute ending inventory at October 31, 2023 using FIFO and Moving-average costs
FIFO method
Date Purchases Cost of Goods Sold Balance
Oct 1 (100@100)10,000
Oct 7 (80@100)8,000 (20@100)2,000
Oct10 (200@110)22,000 (20@100)24,000
(200@110)
Oct18 (300@120)36,000 (20@100)60,000
(200@110)
(300@120)
Oct 27 (20@100)2,000 =51,200 (70@120)8,400
(200@110)22,000
(230@120)27,600

Moving-average costs method

Date Purchases Cost of Goods Sold Balance
Oct 1 (100@100)10,000
Oct 7 (80@100)8,000 (20@100)2,000
Oct 10 (200@110)22,000 24,000
Oct 18 (300@120)36,000 60,000
Oct 27 51,923 8,077
(60,000 *450/520) (60,000 *70/520)
Problem No.2 - Ch7 Bank reconciliation

As of June 30, 2023, the Chopin Company had the following facts concerning cash in bank.
1. Balance per bank, $55,000.
2. Balance per books, $53,965.
3. Deposits in transit, $4,000.
4. Outstanding checks: No.305 $1,000; No.308 $2,500; No.310 $3,000.
5. Error: Check No.301 for $3,416 was correctly paid by the bank but was recorded by the company for
$3,461. This check was a payment to purchase supplies to a creditor.
6. Two bank debit memoranda are as follows:
a. NSF check from Abbie Leon for $3,000 on account.
b. A bank service charge of $10.
7. One bank credit memoranda as follows:
A note receivable for $1,450 plus interest of $75 was collected by the bank. The bank charged $25 for
this service. The interest has been accrued by Chopin Company.
Instructions
a. Prepare the bank reconciliation for Chopin Company for the month ended on June 30, 2023.
b. Prepare the adjusting entries for Chopin Company on June 30, 2023.

Chopin Company
Bank Reconciliation
June 30, 2023
Balance per Bank Statement 55,000
Add: Deposit In Transit 4,000
59,000
Less: Outstanding Checks
No.304 1,000
No.308 2,500
No. 310 3,000 6,500
Adjusted Balance as per Bank 52,500

Balance per Cash Book 53,965

Add: Notes received by bank 1,525
Error in Recording Check No.301 45 1,570
55,535
Less: NSF Check 3,000
Bank Service Charge 35 3,035
52,500
Cont’d . . . Problem No.2

GENERAL JOURNAL
Date Account Title Debit Credit
Jun 30 Cash 1,525
Notes Receivable 1,525

Jun 30 Cash 45
Accounts Payable 45

Jun 30 Accounts Receivable 3,000

Cash 3,000

Jun 30 Miscellaneous Expense 35

Cash 35