Use the following information from Tack Company for the month of April to answer questions 1 through 3. Number of Unit Total Units Count Cost April 1 Beginning Inventory 75 $25 $ 1,875 April 3 Purchase 348 27 9,396 April 15 Purchase 257 28 7,196 680 $18,467Tack Company sells 575 units of inventory for $75each.1. Assume that Tack uses a periodic FIFOinventory system. What is the dollar value of its ending inventory?a. $2,940b. $2,685c. $2,625d. $2,868e. $2,7052. Assume that Tack uses a periodic LIFO inventory system. What is the dollar value of its ending inventory?a. $2,940b. $2,685c. $2,625d. $2,868e. $2,7053. Assume that Tack uses a periodic specific identification inventory system. Its ending inventory consists of 22 units from beginning inventory, 6 units from the April 3 purchase, and 77 units from the April 15 purchase. What is the dollar value of its ending inventory?a. $2,940b. $2,685c. $2,625d. $2,868e. $2,8404. Billing Industries received its utility bill for the current period of $800 and immediately paid it. Its journal entry to record this transaction includes aa. Credit to Utility Expense for $800.b. Debit to Utility Expense for $800.c. Debit to Accounts Payable for $800.d. Debit to Cash for $800.e. Credit to Common Stock for $800.5. On May 1, Chuck’s Cleaning Service collected $3,500 cash from a customer in advance of five months of cleaning service. Chuck’s journal entry to record this transaction includes aa. Credit to Unearned Cleaning Service Fees for $3,500.b. Debit to Cleaning Service Fees Earned for $3,500.c. Credit to Cash for $3,500.d. Debit to Unearned Cleaning Service Fees for $3,500.e. Credit to Common Stock for $3,500.
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