Question

In: Accounting

Walstrom Company uses a perpetual inventory system and had the following inventory transactions for June 2019....

Walstrom Company uses a perpetual inventory system and had the following inventory transactions for June 2019. June 1 Beg. Inventory 50 units @ $14 for $700, on June 4 Purchased 115 units @ $15 for $1,725, on June 5 Sold 100 units, on June 10 Purchased 75 units @ $16 for $1,200, and on June 24 Sold 50 units. Total Cost of Goods Sold Available equals $3,625. The June 30th Ending Inventory is 90 units. The June 30th ending inventory included 45 units from the June 4th purchase and 45 units from the June 10th purchase. What is the cost of ending inventory under the Specific Identification method?
  • A. $1,375
  • B. $1,350
  • C. $1,395
  • D. $1,359

Solutions

Expert Solution

Correct answer------------C. $1,395

Working

Units available Sold Ending Units Cost per unit Ending Inventory
0 $                         -  
Beginning Inventoty 50 50 0 $                     14.00 $                         -  
Purchase On june 4 115 70 45 $                     15.00 $                675.00
Purchase On june 10 75 30 45 $                     16.00 $                720.00
Total $            1,395.00

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:...
Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Flounder Ltd. for $30,700, terms 1/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $660 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,490. 8 Returned damaged merchandise to Flounder and was given a purchase allowance of $3,700. The merchandise was repaired by Flounder and returned to inventory for future...
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month...
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of March. Beginning Inventory - 150 units at $81 March 7 Sold 70 units March 11 Purchase 200 units at $85 March 12 Sold 220 units If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:
L&S Sales Limited had the following transactions in June 2022. L&S uses a perpetual inventory system...
L&S Sales Limited had the following transactions in June 2022. L&S uses a perpetual inventory system and its cost of goods sold is 40% of the selling priceand has an estimated return rate of 10%. 1.Sales on account for June 2022were $120,000.2.$168,000 was received as payments on account during the month. This included $7,500 from Mini-Store Inc., which had previously been written off.3.L&S received returned merchandise of $4,000 from a customer. The merchandise was unopened and was returned to the...
Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for...
Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $12.00 5/5 Purchase 200 $10.50 5/10 Sales 300 $25 5/15 Purchase 200 $13.00 5/20 Sales 250 $28 5/25 Purchase 150 $13.50 Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.
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...
Mead Company uses a perpetual inventory system and engaged in the following transactions during the month...
Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May: Date Transaction May 1 Made cash sales of $8,100; the cost of the inventory was $3,100. 5 Purchased $2,400 of inventory on credit. 9 Made credit sales of $3,500; the cost of the inventory sold was $2,100. 13 Paid sales salaries of $800 and office salaries of $500. 14 Paid for the May 5 purchases. 18 Purchased sales equipment costing $5,100; made...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 140 units @ $51.80 per unit Mar. 5 Purchase 245 units @ $56.80 per unit Mar. 9 Sales 300 units @ $86.80 per unit Mar. 18 Purchase 105 units @ $61.80 per unit Mar. 25 Purchase 190 units @ $63.80 per unit Mar. 29 Sales 170 units @...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 180 units @ $52.60 per unit Mar. 5 Purchase 265 units @ $57.60 per unit Mar. 9 Sales 340 units @ $87.60 per unit Mar. 18 Purchase 125 units @ $62.60 per unit Mar. 25 Purchase 230 units @ $64.60 per unit Mar. 29 Sales 210 units @...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 120 units @ $51.40 per unit Mar. 5 Purchase 235 units @ $56.40 per unit Mar. 9 Sales 280 units @ $86.40 per unit Mar. 18 Purchase 95 units @ $61.40 per unit Mar. 25 Purchase 170 units @ $63.40 per unit Mar. 29 Sales 150 units @...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 120 units @ $51.40 per unit Mar. 5 Purchase 235 units @ $56.40 per unit Mar. 9 Sales 280 units @ $86.40 per unit Mar. 18 Purchase 95 units @ $61.40 per unit Mar. 25 Purchase 170 units @ $63.40 per unit Mar. 29 Sales 150 units @...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT