Question
In: Accounting
Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had...
Stolte Trimble Corporation (STC) uses a perpetual inventory
system. At the beginning of May, STC had 30 units of inventory, of
which 10 units were purchased in March for $60 per unit and 20
units were purchased in April for $66 per unit. STC uses its
perpetual inventory system to account for the following
transactions.
| May | 2 | STC shipped 25 units of inventory to customers for $150 per unit, on credit terms n/60, FOB shipping point. | ||
| May | 4 | STC purchased and received 20 units of inventory for $70 per unit, on credit terms n/45. | ||
| May | 8 | STC shipped 20 units of inventory to customers for $150 per unit, on credit terms n/60, FOB shipping point. |
Required:
Assume STC uses FIFO in its perpetual inventory system. Prepare the
journal entry for each transaction.
| Date | General Journal | Debit | Credit | |
|---|---|---|---|---|
| 1 | May 02 | Accounts Receivable | 3,750 | |
| Sales Revenue | 3,750 | |||
| 2 | May 02 | Cost of Goods Sold | ||
| Inventories | ||||
| 3 | May 04 | Inventories | ||
| Accounts Payable | ||||
| 4 | May 08 | Accounts Receivable | ||
| Sales Revenue | ||||
| 5 | May 08 | Cost of Goods Sold | ||
| Inventories |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had...
Stolte Trimble Corporation (STC) uses a perpetual inventory
system. At the beginning of May, STC had 30 units of inventory, of
which 10 units were purchased in March for $60 per unit and 20
units were purchased in April for $66 per unit. STC uses its
perpetual inventory system to account for the following
transactions.
May
2
STC shipped 25 units of inventory to customers for $150 per
unit, on credit terms n/60, FOB shipping point.
May
4
STC purchased...
Iryna Cosmetics uses the perpetual inventory system to record its inventory. Beginning inventory on 1 May...
Iryna Cosmetics uses the perpetual inventory system to
record its inventory. Beginning inventory on 1 May included 80
packets of skin care packs at $5 each. The firm completed the
following transactions during May:
May 1
Sold 10 packets of skin care packs at $15 each for cash
4
Purchased 25 packets of skin care packs at $5 each on account.
Terms 2/10, n/30.
5
A customer returned 4 of the packets of skin care packs sold on
1 May...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
Units
Cost per unit
Begin Inventory
100
12
Jan 5
Sale
50
10
Purchase
70
16
15
Sale
25
25
Sale
35
Required:
Prepare a schedule showing cost of goods sold and ending
inventory using weighted average.
Prepare a schedule showing cost of goods sold and ending
inventory using First In First Out.
C.
Compute gross profit under for
a...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
Units
Cost per unit
Begin Inventory
100
12
Jan 5
Sale
50
10
Purchase
70
16
15
Sale
25
25
Sale
35
Required:
Prepare a schedule showing cost of goods sold and ending
inventory using weighted average.
Prepare a schedule showing cost of goods sold and ending
inventory using First In First Out
Compute gross profit under for a and b....
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning...
Ranns Supply uses a
perpetual inventory system. On January 1, its inventory account had
a beginning balance of $6,900,000. Ranns engaged in the following
transactions during the year.
Purchased merchandise
inventory for $9,700,000.
Generated net sales of
$25,000,000.
Recorded inventory
shrinkage of $10,000 after taking a physical inventory at
year-end.
Reported gross profit
for the year of $15,000,000 in its income statement.
a. At
what amount was Cost of Goods Sold reported in the company's
year-end income statement?
b. At...
A company uses a perpetual inventory system. The company's beginning inventory of shoes and the purchases...
A company uses a perpetual inventory system. The company's
beginning inventory of shoes and the purchases during a month as as
follows:
Beginning Inventory Jan 1: 16 pairs at $10 ea
Purchase Jan 11: 14 pairs @ $12 ea
Purchase Jan 20: 23 pairs at $15 ea
On Jan 14 the company sold 25 units of shoes. The other 28 units
remained in inventory at Jan 31.
Question 1: Assuming the company uses the average cost flow
assumption what is...
A corporation uses a FIFO perpetual inventory system. During August, it had the following transactions: August...
A corporation uses a FIFO perpetual inventory system. During
August, it had the following transactions: August 1, Beginning
inventory of 8 units @ $11 per unit August 2, 25 units were
purchased at $12 per unit. August 15, 12 units were sold at $25 per
unit. August 18, 15 units were purchased at $14 per unit. August
20. 18 units were sold at $25 per unit August 28. 14 units were
sold at $26 per unit What was the amount...
Bramble Outdoor Stores Inc. uses a perpetual inventory system and has a beginning inventory, as at...
Bramble Outdoor Stores Inc. uses a perpetual inventory system
and has a beginning inventory, as at April 1, of 148 tents. This
consists of 51 tents at a cost of $ 206 each and 97 tents at a cost
of $ 223 each. During April, the company had the following
purchases and sales of tents:
Purchases
Sales
Date
Units
Unit Cost
Units
Unit Price
Apr.
3
75
$ 414
10
202
$ 271
17
249
414
24
287
290
30...
GGG uses a perpetual inventory system. The company’s beginning inventory of a particular product and its...
GGG uses a perpetual inventory system.
The company’s beginning inventory of a particular product and its
purchases during the months of January and February were as
follows:
Quantity
Unit Cost
Beginning inventory (Jan.
1).................................................
50
$6.00
Purchase (Jan.
10).................................................................
25
7.00
Purchase (Jan.
22).................................................................
25
8.52
Purchase (Feb. 9)…………………………………………
65
11.00
Total
...............................................................................
On February 25, GGG sells
65 units of this product. The other units
remain in inventory at February...
Blue Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June...
Blue Furniture Ltd. uses a perpetual inventory system and has a
beginning inventory, as at June 1, of 490 bookcases at a cost of
$130 each. During June, the company had the following purchases and
sales of bookcases:
Purchases
Sales
Date
Units
Unit cost
Units
Unit price
June
6
1,200
$132
10
1,030
$204
14
1,770
133
16
1,670
209
26
960
134
(a)
Determine the cost of goods sold and the cost of the ending
inventory using the average...
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