1. An employee earns $6,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $222 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $190 and contributes $95 to a retirement plan each month. What is the amount of net pay for the employee for the month of January? (Round your intermediate calculations to two decimal places.) Multiple Choice $5,590.00 $5,144.75 $5,443.75 $5,092.75 $5,495.75

2.

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
May 1	Beginning Inventory	350 units @ $20
5	Purchase	320 units @ $22
10	Sales		240 units @ $30
15	Purchase	200 units @ $23
24	Sales		190 units @ $31

• $8,760

• $9,880

• $9,650

• $8,990

• $9,560

3.

Bedrock Company reported a December 31 ending inventory balance of $415,000. The following additional information is also available:

• The ending inventory balance of $415,000 included $73,800 of consigned inventory for which Bedrock was the consignor.
• The ending inventory balance of $415,000 included $25,600 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.

Based on this information, the correct balance for ending inventory on December 31 is:

• $340,400

• $241,000

• $303,000

• $389,400

• $359,600

4.

A company has $106,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $960 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:

• None of these is correct.

• $960

• $5,400

• $7,320

• $6,360

5.

Giorgio had cost of goods sold of $9,457 million, ending inventory of $2,125 million, and average inventory of $2,001 million. Its inventory turnover equals:

• 77.2 days.

• 0.22.

• 4.73.

• 4.50.

• 82.0 days.

6.

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $25,025. Clayborn's May bank statement shows $22,200 on deposit in the bank. Determine the adjusted cash balance using the following information:

Deposit in transit	$	7,600
Outstanding checks	$	6,200
Bank service fees, not yet recorded by company	$	105
A NSF check from a customer, not yet recorded by the company	$	1,320

The adjusted cash balance should be:

• $23,600

• $16,000

• $29,800

• $23,625

• $24,920