Jeter Company Developed the Following Reconciling Information in Preparing Its

question 3

Multiple Choice

Jeter Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{lr}\text { Cash balance per bank, } 9 / 30 & \$ 15,400 \\\text { Note receivable collected by bank } & 8,400 \\\text { Outstanding checks } & 12,600 \\\text { Deposits in transit } & 6,300 \\\text { Bank service charge } & 105 \\\text { NSF check } & 1,680\end{array}$
Using the above information, determine the cash balance per books (before adjustments) for the Jeter Company.

• A)$13,685
• B)$21,700
• C)$2,485
• D)$21,000

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and factory management salaries, not directly tied to producing a specific product.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choosing an option.

Activity Increases

A term indicating a rise in the level of business or production activities.

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing towards covering fixed costs and profit.