Chapter 1, Problem 10.5EC

A company's Cash account shows an ending balance of $4,850. Reconciling items included a bookkeeper error of $125 (a $525 check recorded as $630), two outstanding checks totaling $810, a service charge of $28, a deposit in transit of $270, and interest revenue of $43. What is the adjusted book balance?

A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work in process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats in May. Costs for the Forming Department for the month of May were as follows: Direct materials 33,000 Conversion cost 17,000 A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. The cost of the units transferred to the Finishing Department during May was: A. $50,000 B. $40,000 C. $53,000 D. $42,400

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