Question
In: Accounting
Jose Zorilla uses a perpetual inventory system. During April, he sold 700 units, (270 units on...
Jose Zorilla uses a perpetual inventory system. During April, he
sold 700 units, (270 units on April 20 and 430 units on April 28).
The following other information is available:
| Units | Unit Cost | Total Cost | ||||||
| April 1 inventory | 250 | $12.20 | $3,050.00 | |||||
| April 15 purchase | 400 | 17.20 | 6,880.00 | |||||
| April 23 purchase | 350 | 15.60 | 5,460.00 | |||||
| 1,000 | $15,390.00 | |||||||
1.Calculate the April 30 inventory and the April cost of goods sold using the weighted average cost formula. (Round the weighted average cost per unit to 3 decimal places, e.g. 5.275 and final answers to 2 decimal places, e.g. 5,275.25.)
2.Calculate the April 30 inventory and the April cost of goods sold using the FIFO cost formula. (Round answers to 0 decimal places, e.g. 5,275.)
3.Prepare the journal entry to record the April 15 purchase
assuming the company uses FIFO method of inventory. All purchases
are on credit.
4.Prepare the journal entries to record the sale of units on April
28, assuming the company uses the weighted average cost method. All
sales are credit sales, and total $10,208. (Round final answers to
2 decimal places, e.g. 5,275.25
Solutions
Expert Solution
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| Part -1 | |||||||||||
| Purchase | Sale | Ending Inventory | |||||||||
| Date | Units | Rate | Cost | Units | Rate | Cost | Units | Rate | Cost | ||
| Apr 1 | 250 | $ 12.200 | $ 3,050.00 | ||||||||
| Apr 15 | 400 | $17.200 | $6,880 | 650 | $ 15.277 | $ 9,930.00 | |||||
| Apr 20 | 270 | $ 15.277 | $ 4,125 | 380 | $ 15.277 | $ 5,805.23 | |||||
| Apr 23 | 350 | $15.600 | $5,460 | 730 | $ 15.432 | $11,265.23 | |||||
| Apr 28 | 430 | $ 15.432 | $ 6,636 | 300 | $ 15.432 | $ 4,629.55 | |||||
| Total | $ 10,760 | $ 4,629.55 | |||||||||
| Endning Inventory | $ 4,629.55 | ||||||||||
| COGS | $ 10,760.45 | ||||||||||
| Part 2: | FIFO | ||||||||||
| Purchase | Sale | Ending Inventory | |||||||||
| Date | Units | Rate | Cost | Units | Rate | Cost | Units | Rate | Cost | ||
| Apr 1 | 250 | $ 12.200 | $ 3,050.00 | ||||||||
| Apr 15 | 400 | $17.200 | $6,880 | 250 | $ 12.200 | $ 3,050.00 | |||||
| 400 | $ 17.200 | $ 6,880.00 | |||||||||
| Apr 20 | 250 | $ 12.200 | $ 3,050 | 380 | $ 17.200 | $ 6,536.00 | |||||
| 20 | $ 17.200 | $ 344 | |||||||||
| Apr 23 | 350 | $15.600 | $5,460 | 380 | $ 17.200 | $ 6,536.00 | |||||
| 350 | $ 15.600 | $ 5,460.00 | |||||||||
| Apr 28 | 380 | $ 17.200 | $ 6,536 | 300 | $ 15.600 | $ 4,680.00 | |||||
| 50 | $ 15.60 | $ 780 | |||||||||
| Total | $10,710.00 | $ 4,680.00 | |||||||||
| Endning Inventory | $ 4,680.00 | ||||||||||
| COGS | $ 10,710.00 | ||||||||||
| Part 3: | April 15 Purchase | ||||||||||
| Account | Debit | Credit | |||||||||
| Inventory | $ 6,880 | ||||||||||
| Accounts Payable | $ 6,880 | ||||||||||
| Part 4: | |||||||||||
| Accounts Receivable | $ 10,208 | ||||||||||
| Sales | $ 10,208 | ||||||||||
| Cost of Goods Sold | $ 6,636 | ||||||||||
| Inventory | $ 6,636 | ||||||||||
ekkarill92 answered 1 year agoRelated Solutions
Jose Zorilla uses a perpetual inventory system. During April, he sold 700 units, (270 units on...
Jose Zorilla uses a perpetual inventory system. During April,
he sold 700 units, (270 units on April 20 and 430 units on April
28). The following other information is available:
Units
Unit Cost
Total
Cost
April 1 inventory
250
$12.20
$3,050.00
April 15 purchase
400
17.20
6,880.00
April 23 purchase
350
15.30
5,355.00
1,000
$15,285.00
Calculate the April 30 inventory and the April cost of goods
sold using the weighted average cost formula. (Round
the weighted average cost per unit...
Jose Zorilla uses a perpetual inventory system. During April, he sold 700 units, (270 units on...
Jose Zorilla uses a perpetual inventory system. During April, he
sold 700 units, (270 units on April 20 and 430 units on April 28).
The following other information is available:
Units
Unit Cost
Total
Cost
April 1 inventory
250
$12.20
$3,050.00
April 15 purchase
400
16.20
6,480.00
April 23 purchase
350
14.00
4,900.00
1,000
$14,430.00
Calculate the April 30 inventory and the April cost of goods
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Units
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Total Cost
April 1 inventory
300
$33
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April 15 purchase
440
40
17,600
April 23 purchase
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11,180
1,000
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Units
Unit Cost
Total Cost
April 1 inventory
300
$33
$ 9,900
April 15 purchase
440
40
17,600
April 23 purchase
260
43
11,180
1,000
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17
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[Entry field with incorrect answer now contains modified
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Cost of goods sold
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