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In: Accounting
Exercise 2-2 The following A. B. Murphy Company data show purchase and sales transactions for the...
Exercise 2-2
The following A. B. Murphy Company data show purchase and sales
transactions for the month of April. A. B. Murphy uses a perpetual
inventory system.
| Date | Activities |
Units Purchased (At Cost) |
Units Sold (At Retail) |
| 1-Apr | Beginning inventory | 065 units @ $40/unit | |
| 8-Apr | Purchase | 225 units @ $45/unit | |
| 12-Apr | Sales | 235 units @ 75/unit | |
| 19-Apr | Purchase | 050 units @ $50/unit | |
| 23-Apr | Purchase | 125 units @ $55/unit 0 | |
| 27-Apr | Sales | ________ | 95 units @ 80/unit |
| Totals | 465 units | 330 units |
Compute the following:
1. Cost of (1) goods available for sale and (2) number
of units for sale.
2. Number of units in ending inventory.
1. Cost assigned to ending inventory, using any
three of the following four methods. Compute costs using all four
methods for distinguished performance. Round per unit costs to
three decimal places and inventory balances to the nearest
dollar.
a. FIFO.
b. LIFO.
c. Weighted average.
d. Specific identification (see note below).
FIFO Perpetual
| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance |
LIFO Perpetual
| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance |
Weighted Average Perpetual
| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance |
Specific Identification
Note: The April 12 sale comprised 55 units from
beginning inventory and 180 units from the April 8 purchase. The
April 27 sale comprised 30 units from the April 19 purchase and 65
units from the April 23 purchase.
| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance |
1. Gross profit, using FIFO, LIFO, weighted average, and specific identification.
| FIFO | LIFO | WEIGHTED AVERAGE | SPECIFIC IDENTIFICATION |
Solutions
Expert Solution
| FIFO METHOD | PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | |||||||
| Date | Particulars | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost | Units (A) | Rate | Total Cost |
| Apr.01 | Beginning inventory | 65 | $ 40.00 | $ 2,600 | ||||||
| Apr.08 | Purchases | 225 | $ 45.00 | $ 10,125 | 65 | $ 40.00 | $ 2,600 | |||
| 225 | $ 45.00 | $ 10,125 | ||||||||
| Apr.12 | Sales | 65 | $ 40.00 | $ 2,600 | ||||||
| 170 | $ 45.00 | $ 7,650 | 55 | $ 45.00 | $ 2,475 | |||||
| Apr.19 | Purchases | 50 | $ 50.00 | $ 2,500 | 55 | $ 45.00 | $ 2,475 | |||
| 50 | $ 50.00 | $ 2,500 | ||||||||
| Apr.23 | Purchases | 125 | $ 55.00 | $ 6,875 | 55 | $ 45.00 | $ 2,475 | |||
| 50 | $ 50.00 | $ 2,500 | ||||||||
| 125 | $ 55.00 | $ 6,875 | ||||||||
| Apr.27 | Sales | 55 | $ 45.00 | $ 2,475 | ||||||
| 40 | $ 50.00 | $ 2,000 | 10 | $ 50.00 | $ 500 | |||||
| 125 | $ 55.00 | $ 6,875 | ||||||||
| Total | 400 | $19,500 | 330 | $14,725 | 135 | $ 65.00 | $ 7,375 | |||
| LIFO METHOD | PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | |||||||
| Apr.01 | Beginning inventory | 65 | $ 40.00 | $ 2,600 | ||||||
| Apr.08 | Purchases | 225 | $ 45.00 | $ 10,125 | 65 | $ 40.00 | $ 2,600 | |||
| 225 | $ 45.00 | $ 10,125 | ||||||||
| Apr.12 | Sales | 225 | $ 45.00 | $ 10,125 | ||||||
| 10 | $ 40.00 | $ 400 | 55 | $ 40.00 | $ 2,200 | |||||
| Apr.19 | Purchases | 50 | $ 50.00 | $ 2,500 | 55 | $ 40.00 | $ 2,200 | |||
| 50 | $ 50.00 | $ 2,500 | ||||||||
| Apr.23 | Purchases | 125 | $ 55.00 | $ 6,875 | 55 | $ 40.00 | $ 2,200 | |||
| 50 | $ 50.00 | $ 2,500 | ||||||||
| 125 | $ 55.00 | $ 6,875 | ||||||||
| Apr.27 | Sales | 95 | $ 55.00 | $ 5,225 | 55 | $ 40.00 | $ 2,200 | |||
| 50 | $ 50.00 | $ 2,500 | ||||||||
| 30 | $ 55.00 | $ 1,650 | ||||||||
| Total | 400 | $19,500 | 330 | $15,750 | 135 | $ 6,350 | ||||
| Average Cost Method | PURHASES | COST OF GOODS SOLD | CLOSING BALANCE | |||||||
| Apr.01 | Beginning inventory | 65 | $ 40.00 | $ 2,600 | ||||||
| Apr.08 | Purchases | 225 | $ 45.00 | $ 10,125 | 290 | $ 43.88 | $ 12,725 | |||
| Apr.12 | Sales | 235 | $ 43.88 | $ 10,312 | 55 | $ 43.88 | $ 2,413 | |||
| Apr.19 | Purchases | 50 | $ 50.00 | $ 2,500 | 105 | $ 46.79 | $ 4,913 | |||
| Apr.23 |
 ekkarill92 answered 1 year agoRelated SolutionsExercise 2-2 The following A. B. Murphy Company data show purchase and sales transactions for the...Exercise 2-2
The following A. B. Murphy Company data show purchase and sales
transactions for the month of April. A. B. Murphy uses a perpetual
inventory system.
Date
Activities
Units Purchased
(At Cost)
Units Sold
(At Retail)
1-Apr
Beginning inventory
065 units @ $40/unit
8-Apr
Purchase
225 units @ $45/unit
12-Apr
Sales
235 units @ 75/unit
19-Apr
Purchase
050 units @ $50/unit
23-Apr
Purchase
125 units @ $55/unit 0
27-Apr
Sales
________
95 units @ 80/unit
Totals
465 units
330...
Exercise B: Show G/L Postings for the following transactions 1. Cash was received for services performed...Exercise B: Show G/L Postings for the following transactions
1. Cash was received for services performed for customers,
$1,200.
2. Services were performed for customers on credit, $4,200.
Murphy Smith has the following stock transactions for 2017. Name Date Purchased Basis Date Sold Sales...Murphy Smith has the following stock transactions for 2017.
Name
Date Purchased
Basis
Date Sold
Sales Proceeds
Apex Corp.
1/23/1986
7,250
7/22/2017
4,500
Blue Corp.
4/20/2017
14,000
9/13/2017
17,500
Coral Corp.
8/23/2010
10,750
10/12/2017
15,300
Diamond Corp
5/19/2017
5,230
10/12/2017
12,400
Electric Corp.
8/20/2017
7,300
11/14/2017
3,500
Based on the information in above table, answer the following
questions: (a) What is Murphy’s net short-term capital gain or loss
from these transactions? (b) What is Murphy’s net long-term capital
gain or...
Murphy Smith has the following stock transactions for 2017. Name Date Purchased Basis Date Sold Sales...Murphy Smith has the following stock transactions for 2017.
Name
Date Purchased
Basis
Date Sold
Sales Proceeds
Apex Corp.
1/23/1986
7,250
7/22/2017
4,500
Blue Corp.
4/20/2017
14,000
9/13/2017
17,500
Coral Corp.
8/23/2010
10,750
10/12/2017
15,300
Diamond Corp
5/19/2017
5,230
10/12/2017
12,400
Electric Corp.
8/20/2017
7,300
11/14/2017
3,500
Based on the information in above table, answer the following
questions:
(a) What is Murphy’s net short-term capital gain or loss from these
transactions?
(b) What is Murphy’s net long-term capital gain or...
Murphy Smith has the following stock transactions for 2017. Name Date Purchased Basis Date Sold Sales...Murphy Smith has the following stock transactions for 2017.
Name
Date Purchased
Basis
Date Sold
Sales Proceeds
Apex Corp.
1/23/1986
7,250
7/22/2017
4,500
Blue Corp.
4/20/2017
14,000
9/13/2017
17,500
Coral Corp.
8/23/2010
10,750
10/12/2017
15,300
Diamond Corp
5/19/2017
5,230
10/12/2017
12,400
Electric Corp.
8/20/2017
7,300
11/14/2017
3,500
Based on the information in above table, answer the following
questions:
(a) What is Murphy’s net short-term capital gain or loss from these
transactions?
(b) What is Murphy’s net long-term capital gain or...
Murphy Delivery Service completed the following transactions during December 2018Murphy Delivery Service completed the following transactions during December 2018 Dec.1 Murphy Delivery Service began operations by receiving $ 13,000 cash and Dec. a truck with a fair value of $ 9,000 from Russ Murphy. The business issued Murphy shares of common stock in exchange for this contribution.1 Paid $ 600 cash for a six-month insurance policy. The policy begins December 1 .4 Paid $ 750 cash for office supplies.12 Performed delivery services for a customer and received $ 2,200 cash.15....
Murphy Delivery Service completed the following transactions during December 2018:information on second picture and requirements on
firstUse Comprehensive Problem 1 For Chapter 1- 4, found on PART 1 (5 Points): A. Prepare the journal entries for December. B. Prepare the unadjusted trial balance. PART 2 (8 Points) A. Prepare the adjusting entries. B. Prepare the adjusted trial balance. C. Prepare the Income Statement D. Prepare the Retained Earnings Statement.E. Prepare the Balance Sheet. PART 3 (2 Points): A. Prepare the closing entries.B. Prepare the post-closing trial balance. Murphy Delivery Service completed the following transactions during December 2018: Dec. 1 Murphy Delivery Service...
Murphy Delivery services completed the following transactions during December 2018Murphy Delivery services completed the following transactions
during December 2018 Dec1 Murphy delivery services began operations by receiving $13000
cash and a truck with a fair value of $9000 from Russ Murphy. The
business issued Murphy Shares of common stock in exchange for this
contribution.Dec 1 Paid $600 cash for six month insurance policy. The policy
begins December 1Dec 4 Paid $750 cash for office supplies.Dec 12 Performed delivery services for a customer and received
$2200 cash.Dec 15 Completed a large...
Pam’s Creations had the following sales and purchase transactions during Year 2. Beginning inventory consisted of...Pam’s Creations had the following sales and purchase
transactions during Year 2. Beginning inventory consisted of 280
items at $96 each. The company uses the FIFO cost flow assumption
and keeps perpetual inventory records.
Date
Transaction
Description
Mar. 5
Purchased
260 items
@
$
106
Apr. 10
Sold
150 items
@
$
207
June 19
Sold
275 items
@
$
207
Sept. 16
Purchased
210 items
@
$
111
Nov. 28
Sold
140 items
@
$
212
Required
a....
Chapter 2 Exercise is divided in to 2 sections A and B. Data for this assignment...Chapter 2 Exercise is divided in to 2 sections A and B. Data for
this assignment is under Data files in module Ex2-30-e8.xls (for A)
and Ex2-34-e8.xls (for B). See data under modules.
A) The following data give the weekly amounts spent on
groceries for a sample of households.
$271
$363
$159
$ 76
$227
$337
$295
$319
$250
279
205
279
266
199
177
162
232
303
192
181
321
309
246
278
50
41
335
116
100
151...
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