Question
In: Accounting
Askew Company uses a periodic inventory system. The June 30, 2018, year-end trial balance for the...
Askew Company uses a periodic inventory system. The June 30,
2018, year-end trial balance for the company contained the
following information:
| Account | Debit | Credit | ||
| Merchandise inventory, 7/1/17 | 32,300 | |||
| Sales | 383,000 | |||
| Sales returns | 12,300 | |||
| Purchases | 243,000 | |||
| Purchase discounts | 6,300 | |||
| Purchase returns | 10,300 | |||
| Freight-in | 17,600 | |||
In addition, you determine that the June 30, 2018, inventory
balance is $40,300.
Required:
1. Calculate the cost of goods sold for the Askew
Company for the year ending June 30, 2018.
2. Prepare the year-end adjusting entry to record
cost of goods sold.
Solutions
Expert Solution
1. Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2018.
| Beginning inventory | 32300 | |
| Purchase | 243000 | |
| Less: Purchase discount | (6300) | |
| Less: Purchase returns | (10300) | |
| Add: Freight in | 17600 | |
| Net purchase | 244000 | |
| Cost of goods available for sale | 276300 | |
| Less: Ending inventory | (40300) | |
| Cost of goods sold | 236000 |
2. Prepare the year-end adjusting entry to record cost of goods sold.
| Date | accounts & explanation | debit | credit |
| June 30,2018 | Cost of goods sold | 236000 | |
| Inventory (ending) | 40300 | ||
| Inventory (beginning) | 32300 | ||
| Purchases | 244000 | ||
| (To record adjusting entry) |
ekkarill92 answered 2 years agoRelated Solutions
Askew Company uses a periodic inventory system. The June 30, 2018, year-end trial balance for the...
Askew Company uses a periodic inventory system. The June 30,
2018, year-end trial balance for the company contained the
following information:
Account
Debit
Credit
Merchandise inventory, 7/1/17
32,400
Sales
384,000
Sales returns
12,400
Purchases
244,000
Purchase discounts
6,400
Purchase returns
10,400
Freight-in
17,800
In addition, you determine that the June 30, 2018, inventory
balance is $40,400.
Required:
1. Calculate the cost of goods sold for the Askew
Company for the year ending June 30, 2018.
2. Prepare the year-end adjusting...
Jeters Company uses a periodic inventory system and reports the following for the month of June....
Jeters Company uses a periodic inventory system and reports the
following for the month of June. Date Explanation Units Unit Cost
Total Cost June 1 Inventory 120 $5 $600 12 Purchase 370 6 2,220 23
Purchase 200 7 1,400 30 Inventory 230 Instructions
a. Compute the cost of the ending inventory and the cost of
goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round
average unit cost to three decimal places.)
b. Which costing method gives the highest...
Kaleta Company uses the periodic inventory system and reports the following for the month of June....
Kaleta Company uses the periodic inventory system and reports
the following for the month of June. Units Unit Cost Total Cost
Units Unit Cost Total Cost
June 1 Inventory 200 $5 $1,000
June 12 Purchase 400 6 2,400
June 23 Purchase 300 7 2,100
June 30th Inventory 100
Compute the cost of ending inventory and the cost of goods sold
using the average-cost method. (Round answers to 0 decimal
places)
The ending inventory $________
The Cost of...
he Kali Company uses the periodic inventory system for its merchandise inventory. The June 1 inventory...
he Kali Company uses the periodic inventory system for its
merchandise inventory. The June 1 inventory for one of the items in
the merchandise inventory consisted of 60 units with a unit cost of
$45. Transactions for this item during June were as follows: June 5
Purchased 40 units @ $50 per unit 13 Sold 50 units @ $95 per unit
25 Purchased 40 units @ $53 per unit 29 Sold 20 units@ $110 per
unit Required a. Compute the...
Maple company uses the periodic inventory system. The beginning balance of inventory and subsequent inventory purchases...
Maple company uses the periodic inventory system. The beginning
balance of inventory and subsequent inventory purchases made by the
company during the month of March 2019 are given below:
March 01: Beginning inventory, 450
units @ $18 per unit.
March 18: Inventory purchased, 600
units @ $20 per unit.
March 25: Inventory purchased, 700
units @ $26 per unit.
The Mark company sold 1,300 units during the month of July.
Required:
Calculate the cost of goods sold and ending inventory...
Delta company uses the periodic inventory system. The beginning balance of inventory and subsequent inventory purchases...
Delta company uses the periodic inventory system. The beginning
balance of inventory and subsequent inventory purchases made by the
company during the month of July 2019 are given below:
July 01: Beginning inventory, 500 units @ $20 per unit.
July 18: Inventory purchased, 800 units @ $24 per unit.
July 25: Inventory purchased, 700 units @ $26 per unit.
The Delta company sold 1,400 units during the month of July.
Required: Compute the cost of goods sold and
ending inventory...
Maple company uses the periodic inventory system. The beginning balance of inventory and subsequent inventory purchases...
Maple company uses the periodic inventory system. The
beginning balance of inventory and subsequent inventory purchases
made by the company during the month of March 2019 are given
below:
• March 01: Beginning inventory, 450 units @ $18 per unit.
• March 18: Inventory purchased, 600 units @ $20 per unit.
• March 25: Inventory purchased, 700 units @ $26 per unit.
The Mark company sold 1,300 units during the month of March.
Required:
Calculate the cost of goods sold...
The Delta company uses a periodic inventory system. The beginning balance of inventory and purchases made...
The Delta company uses a periodic inventory system. The
beginning balance of inventory and purchases made by the company
during the month of July, 2018 are given below: (1.5 pt)
July 01: Beginning inventory, 500 units @ $20 per unit.
July 18: Inventory purchased, 800 units @ $24 per unit.
July 25: Inventory purchased, 700 units @ $26 per unit.
July 29: Inventory purchased, 400 units @$25 per unit.
Ending Inventory on July 30, 2018 were 500 units.
Calculate the...
James Audio Co Uses the Periodic inventory system. James reported these amounts on June 30, 2009:...
James Audio Co Uses the Periodic inventory system. James
reported these amounts on June 30, 2009:
Inventory, June 30 2008 $20,000
Inventory, June 30 2009 $22,000
Purchase (of inventory) $85000
Purchase Discount 4000
Purchase Return 9000
Frieght in 5000
Sales Revenue 190,000
Sales Returns 20,000
Compute James' inventory turnover ratio.
Broadhead Company uses a periodic inventory system.
Broadhead Company uses a periodic inventory system. At the end
of the annual accounting period, December 31 of the current year,
the accounting records provided the following information for
product 2: Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1) Alternative compiled code sequence using instructions in classes A, B, C. What is the average...
- An asset is purchased on January 1 for $48,700. It is expected to have a useful...
- Do we have any online or offline tool to convert c and cpp programs into MIPS...
- -what is the pH of HCl 0,1M and NaCl 0,1M mixed together solution? -What is the...
- function X=extractDWT(x_train,startS,endS,wStep,wRange) % x_train = input signal % startS = from second % endS = end...
- Do you agree that Social Loafing is similar to Theory X. Give an example to support...
- Computing Cost of Goods Sold and Ending Inventory. Bartov Corporation reports the following beginning inventory and...
ADVERTISEMENT