Question
In: Accounting
Great Buys Department Store uses the perpetual system of stock valuation. It records the following movement...
Great Buys Department Store uses the perpetual system of stock valuation. It records the following movement of stock for the first half of the year, 2010.
Purchases Sales
January 200 units @ $10 April 300 units @ $20
March 240 units @ $14 June 350 units @ $30
May 260 units @ $20
Required:
(a) Using the information above, calculate the value of stock at the end of June using the following methods:
(i) First in, First out
(ii) Last in, First out
(iii) Average Cost Method
(b) Prepare a trading account to show the effects that all three methods above would have on gross profit.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Mark’s Music is a store that buys and sells musical instruments and uses a perpetual inventory...
Mark’s Music is a store that buys and sells musical instruments
and uses a perpetual inventory system. Transactions for the
business are shown below:
Nov. 2
Purchased two electric guitars from Fender Supply Limited, on
account, at a cost of $850 each, terms 1/10, n/60.
4
Made a cash sale of two keyboards for a total invoice price of
$2,300. The cost of each keyboard was $900.
5
Received a credit from Western Acoustic Inc. for the return of
an...
A company that uses the PERPETUAL inventory system has the following records for 2017 Beginging inventory...
A company that uses the PERPETUAL inventory system has the
following records for 2017
Beginging
inventory
Units
Unit cost
Purcahses:
120
$48
Febuary 8th
60
52
June 15th
70
54
22-Aug
55
57
Novemeber 29
45
61
Salkes:
30-Mar
145
20-Jul
90
December 15th
60
Please compute the cost of ending inventory and the cost of
goods sold using the follow methods: Please also show all
steps/work
A) FIFO
B) Weighted Average
c) LIFO
Concord Limited uses a perpetual inventory system. The inventory records show the following data for its...
Concord Limited uses a perpetual inventory system. The inventory
records show the following data for its first month of
operations:
Date
Explanation
Units
Unit Cost
Total Cost
Balance in
Units
Aug.
2
Purchases
237
$73
$17,301
237
3
Purchases
475
97
46,075
712
10
Sales
(300
)
412
15
Purchases
894
122
109,068
1,306
25
Sales
(330
)
976
Calculate the cost of goods sold and ending inventory using the
FIFO cost method.
Cost of goods sold
$enter a dollar...
The MEC Store uses a perpetual inventory system. The following transactions occurred during March 2022:
The MEC Store uses a perpetual inventory system. The following transactions occurred during March 2022: March 2 Purchased merchandise from Flake Co. for $5,600 under credit terms of 1/15, n/30, FOB factory. 3 Paid $280 for shipping charges on the March 2nd purchase. 5 Sold merchandise to Shingle Co. for $3,700 under credit terms of 2/10, n/30, FOB shipping point. The cost of the merchandise was $1,780. 6 Received a $1,200 credit memorandum acknowledging the return of merchandise purchased on March 2. 7 Shingle Co. requested a price...
Emerald Co. uses a perpetual inventory system and records purchases of merchandise at net cost. The...
Emerald Co. uses a perpetual inventory system and records
purchases of merchandise at net cost. The company recently
purchased 200 compact discs at an invoice price of $6,000 and terms
of 2/10, n/30. Half of these discs had been mislabeled and were
returned immediately to the supplier. The journal entry to record
payment of this invoice after the discount period has expired will
include a:
Black, Inc. is an auto parts retailer which uses a perpetual inventory system. The company records...
Black, Inc. is an auto parts retailer which uses a perpetual
inventory system. The company records its purchases at net cost and
sales at full invoice price. Prepare journal entries (no
explanations needed) for the following transactions.
10/5: Black purchased 150 Charge-Up batteries on account from
White Co.. The total invoice price is $40 per battery ($6,000
total); terms of 2/10,n/30.
10/7: Black returned 20 batteries which had been ordered in
error. The amount is to be deducted from the...
Grouper Limited uses a perpetual inventory system. The inventory records show the following data for its first month of operations:
Grouper Limited uses a perpetual inventory system. The inventory
records show the following data for its first month of
operations:DateExplanationUnitsUnit CostTotal CostBalance in
UnitsAug.2Purchases251$72$18,0722513Purchases49810351,29474910Sales(300)44915Purchases902118106,4361,35125Sales(332)1,019Calculate the cost of goods sold and ending inventory using the
FIFO cost method.Cost of goods sold$enter a dollar amountEnding inventory$enter a dollar amount Calculate the cost of goods sold and ending inventory using the
average cost method. (Round average cost per unit and
final answers to 2 decimal places, e.g. 1.25.)Cost of goods sold$enter a dollar amountEnding...
Larry’s Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The...
Larry’s Building Supplies (LBS) is a local hardware store. LBS
uses a perpetual inventory system. The following transactions
(summarized) have been selected for analysis:
a.
Sold merchandise for cash (cost of merchandise $345,350).
$
725,000
b.
Received merchandise returned by customers as unsatisfactory
(but in perfect condition) for cash refund (original cost of
merchandise $4,900).
7,500
c.
Sold merchandise (costing $10,200) to a customer on account
with terms n/30.
17,000
d.
Collected half of the balance owed by the customer...
Larry’s Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The...
Larry’s Building Supplies (LBS) is a local hardware store. LBS
uses a perpetual inventory system. The following transactions
(summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $313,350). $
665,000
b. Received merchandise returned by customers as unsatisfactory
(but in perfect condition) for cash refund (original cost of
merchandise $4,100). 6,300
c. Sold merchandise (costing $8,280) to a customer on account
with terms 2/10, n/30. 13,800
d. Collected half of the balance owed by the...
Malibu Boats Inc. uses a job order cost accounting system and keeps perpetual inventory records. The...
Malibu Boats Inc. uses a job order cost accounting system and
keeps perpetual inventory records. The following transactions
occurred in the first month of operations:
Purchased raw materials on account, $230,000.
2. An analysis of the requisitions
shows the following: Direct materials requisitioned during the
month:
Job 101 $26,000
Job 102 19,000
Job 103 31,000
$76,000
Factory labor costs incurred were $85,000 of which $71,000
pertained to factory wages payable and $14,000 pertained to
employer payroll...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- For Questions 1-3: consider the following code: public class A { private int number; protected String...
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
ADVERTISEMENT