The Dinho Corporation Identified the Following Data When Preparing Their

question 53

Multiple Choice

The Dinho Corporation identified the following data when preparing their April bank reconciliation: $$\begin{array} { l r } \text { Bank statement balance } & \$ 45,000 \\\text { Dinho's book balance (before adjustments) } & ? \\\text { Outstanding checks } & 4,500 \\\text { NSF checks } & 1,400 \\\text { Service charges } & 300 \\\text { Deposits in transit } & 5,000 \\\text { Interest earned on checking account } & 25\end{array}$$ In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200. What is the adjusted cash balance at the end of April?

• A) $44,300
• B) $45,500
• C) $45,000
• D) $45,700

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Definitions:

Cost Per Equivalent Units

A method used in process costing that calculates the cost assigned to units produced during a period, considering partially completed units as fractions of whole units.

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory balance using a weighted average of the costs of all items available for sale during the period.

FIFO Costing

An inventory valuation method that assumes that the first items placed in inventory are the first ones sold, standing for First In, First Out.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.