40. Sassy Saxophones has the following inventory data: July1 Purchases July 1 Be ginning inventory 20 units at $120 21 120 units at $112 60 units at $115 Purchases The company sold 136 units during the year. Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a L.IFO basis. a. $7,328 b. $7,348 c. $15,392. d. $15,412 41. An assumption about cost flow for inventory like LIFO of FIFO is necessary because it is required by the income tax regulation. a. b. even when there is no change in the purchase price on inventory c. only when the flow of goods cannot be determined. d. because prices usually change, and tracking which units have been sold is difficult. A successful discount retail store such as Walmart would probably have a. a low inventory turnover b. a high inventory turnover c. zero profit margin. d. low volume. 42. 43. Nilson Company gathered the following reconciling information in preparing its August bank reconciliation: $7,000 Cash balance per books, 8/31 Deposits in transit Notes receivable and interest collected by bank Bank charge for check printing Outstanding checks NSF check 300 1,700 40 4,000 340 The adjusted cash balance per books on August 31 is a. $8,320. b. $8,020. c. $4,620. d. $4,920. Which of the following would not be included in the definition of cash? a. Money on deposit in a bank. b. Coins. c. NSF checks. d. Petty cash 44