Question

ACC 3010

Project 2

Spring Summer 2018

This project will be submitted in 3 parts. The submission dates and Required parts to be completed for each submission are:

Submission 1 - due Saturday June 16 before 5pm - You must submit your completed March Journal entries, your completed Inventory Cards for all 3 Inventory costing methods, and the Worksheet complete through the Trial Balance. Your file must be named correctly - "Your name (first and last) Project 2 part 1. Failure to name your file correctly will result in a 1 point deduction

1.    Complete the Perpetual Inventory card worksheets to reflect the March purchases and sales under the 3 different Inventory costing methods. For the weighted average computations, round unit cost to the nearest penny and total cost to the nearest dollar.

2.    Complete the March Journal Entries to reflect the purchases and sales transactions (company uses the perpetual method) under the LIFO costing method and post.

3.     Post the March entries to the worksheet columns for the March entries and complete the Trial Balance columns of the Worksheet.

Inventory Information                                                                                       Inventory on hand at the beginning of October:                                                                                                                                           Units       Cost / unit             Total Cost             Purchase # 1         10           50           $500       Purchase # 2         35           60           2,100                      45                           $2,600                                                                                 March 2018 transactions related to buying and selling doodad inventory                                                                                                                             1-Mar     Sold 25 doodads at $115 each on credit                                                                                                       3-Mar     Purchased 40 doodads at a cost of $70 per doodad on credit                                                                                                  15-Mar Sold 30 doodads at $125 each on credit                                                                                                       20-Mar Purchased 25 doodads at a cost of $80 per doodad on credit                                                                                                  24-Mar Sold 35 doodads at $140 each on credit                                                                                                                                                                                                                       The PHYSICAL count of doodad inventory on hand at March 31, 2018 shows 18 doodads at a LIFO cost of $980.      #NAME? PARTIALLY ADJUSTED TRIAL BALANCE March 31 2018 Adjusting Part Adj T/B March Jes Trial Balance & Bank Rec Jes Adusted TB DR CR DR CR DR CR DR CR DR CR Cash $253,560 Accounts Receivable 146,800 Allowance for Uncollectible Accounts $2,569 Supplies 85,650 Inventory 2,600 Prepaid Insurance 16,800 Land 50,000 Building 125,500 Accumulated Depr – Building 5,670 Computer equipment 52,950 Accumulated Depr – Comp Equip 1,750 Office Furniture        85,960 Accumulated Depr - Office Furniture 890 Accounts Payable 48,526 Interest Payable          3,200 Utilities Payable 8,952 Wages Payable 98,505 Long term Note Payable 90,000 Mortgage Payable 60,000 Common Stock 400,000 Retained Earnings 106,468 Dividends          4,000 Service Revenue 345,650 Tablet Sales Revenue 210,250 Cost of Goods Sold 165,850 Bad Debt Expense Depreciation Expense – Building 1,350 Depreciation Expense - Computer Equip 890 Depreciation Expense - Office Furn 650 Interest Expense 3560 Insurance Expense 38,950 Supplies expense 72,860 Bank fee (expense) Utilities Expense 75,900 Wage Expense 198,600 TOTALS $1,382,430 $1,382,430 $0

Answer 1

		FIFO METHOD
			Purchases			Sales			Balance
	Date		Quantity	Rate	Amount	Quantity	Rate	Amount	Quantity	Rate	Amount
		Beginning Balance							10	$50	$500
									35	$60	$2,100
	.1 March	Sales				10	$50	$500
						15	$60	$900	20	$60	$1,200
	.3 March	Purchase	40	$70	$2,800				20	$60	$1,200
									40	$70	$2,800
	.15 march	Sales				20	$60	$1,200
						10	$70	$700	30	$70	$2,100
	.20 March	Purchase	25	$80	$2,000				30	$70	$2,100
									25	$80	$2,000
	.24 March	Sales				30	$70	$2,100
						5	$80	$400	20	$80	$1,600
		LIFO METHOD
			Purchases			Sales			Balance
	Date		Quantity	Rate	Amount	Quantity	Rate	Amount	Quantity	Rate	Amount
		Beginning Balance							10	$50	$500
									35	$60	$2,100
	.1 March	Sales				25	$60	$1,500	10	$50	$500
									10	$60	$600
	.3 March	Purchase	40	$70	$2,800				10	$50	$500
									10	$60	$600
									40	$70	2800
	.15 march	Sales				30	$70	$2,100	10	$50	$600
									10	$60	$600
									10	$70	$700
	.20 March	Purchase	25	$80	$2,000				10	$50	$600
									10	$60	$600
									10	$70	$700
									25	$          80	2000
	.24 March	Sales				25	$80	$600	10	$50	$700
						10	$70	$700	10	$60	$600
		WEIGHTED AVERAGE METHOD
			Purchases			Sales			Balance
	Date		Quantity	Rate	Amount	Quantity	Rate	Amount	Quantity	Rate	Amount
		Beginning Balance							45	$58	$2,600	(Rate=2600/45)
	.1 March	Sales				25	$58	$1,444	20	$58	$1,156
	.3 March	Purchase	40	$70	$2,800				60	$66	$3,956	Rate=3956/60)
	.15 march	Sales				30	$66	$1,978	30	$66	$1,980
	.20 March	Purchase	25	$80	$2,000				55	$72	$3,980	(Rate=3980/55)
	.24 March	Sales				35	$72	$2,533	20	$72	$1,447