Answer Practice Exercises Additional Accounting
Answer Practice Exercises Additional Accounting
Answer Practice Exercises Additional Accounting
SME-Dr. Carr
1. Indicate whether each of the following items is an asset, liability, or part of equity:
2. Which of the accounts above are temporary accounts that will be closed out to equity:
b. Utility Expense
e. Sales
j. Dividends
e. Is Jake Company’s balance sheet in balance? Verify using the accounting equation.
Total Assets of 47,000 = Total Liabilities of 28,000 + Total Equity of 19,000
Inventory Exercise:
1. Rickety Company purchased $1,000 widgets and has $200 widgets in its ending
inventory. If Rickety began the year with $500 widgets, what amount of widgets
were sold during the year? In other words, what is Rickety’s COGS:
a. $1,000
b. $1,500
c. $1,200
d. $1,300 (Beginning Inventory plus purchases less ending inventory = COGS)
a. 120
b. 240
c. 100
d. 180
2. Using FIFO inventory costing method, the cost per unit of the 60 units in ending
inventory would be
a. $10
b. $11
c. $10.50
d. Cannot be determined from this information.
3. Using the LIFO inventory costing method, the cost per unit of the 60 units in
ending inventory would be
a. $10
b. $11
c. $10.50
d. Cannot be determined from this information.