Question
In: Accounting
The following data regarding purchases and sales of a commodity were taken from the related perpetual...
The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: (30 points) June 1 Balance 25 units at $60 6 Sale 20 units at $70 8 Purchase 20 units at $61 16 Sale 10 units at $70 20 Purchase 20 units at $62 23 Sale 25 units at $70 30 Purchase 15 units at $63 Record the inventory, purchases, cost of goods sold and sales in a perpetual inventory record similar to what we have done in class on homework, using the first-in first-out method. Journalize the entries in the sales and cost of sales accounts. Assume that all sales were on account. Determine the gross profit from sales for the period. Determine the ending inventory.
Solutions
Expert Solution
| Solution: 1 | ||||||||||
| FIFO METHOD | PURHASES | COST OF GOODS SOLD | ENDING INVENTORY | |||||||
| Date | Particulars | Units | Rate | Total Cost | Units | Rate | Total Cost | Units | Rate | Total Cost |
| June .01 | Beginning inventory | 25 | $ 60.00 | $ 1,500 | ||||||
| June .06 | Sales | 20 | $ 60.00 | $ 1,200 | 5 | $ 60.00 | $ 300 | |||
| June .08 | Purchases | 20 | $ 61.00 | $ 1,220 | 5 | $ 60.00 | $ 300 | |||
| 20 | $ 61.00 | $ 1,220 | ||||||||
| June .16 | Sales | 5 | $ 60.00 | $ 300 | ||||||
| 5 | $ 61.00 | $ 305 | 15 | $ 61.00 | $ 915 | |||||
| June.20 | Purchases | 20 | $ 62.00 | $ 1,240 | 15 | $ 61.00 | $ 915 | |||
| 20 | $ 62.00 | $ 1,240 | ||||||||
| June.23 | Sales | 15 | $ 61.00 | $ 915 | ||||||
| 10 | $ 62.00 | $ 620 | 10 | $ 62.00 | $ 620 | |||||
| June.30 | Purchases | 15 | $ 63.00 | $ 945 | 10 | $ 62.00 | $ 620 | |||
| 15 | $ 63.00 | $ 945 | ||||||||
| Total | 55 | $ 3,405 | 55 | $ 3,340 | 25 | $ 1,565 | ||||
| Solution: 2 | Ending inventory = $ 1,565 | |||||||||
| Date | Accounts | Debit | Credit | |||||||
| June.06 | Account Receivable | $ 1,400 | ||||||||
| Sales Revenue | $ 1,400 | |||||||||
| June.06 | Cost of Goods Sold | $ 1,200 | ||||||||
| Merchandise Inventory | $ 1,200 | |||||||||
| June.16 | Account Receivable (10 X 70) | $ 700 | ||||||||
| Sales Revenue | $ 700 |
 ekkarill92 answered 1 year agoRelated SolutionsThe following data regarding purchases and sales of a commodity were taken from the related perpetual...The following data regarding purchases and sales of a commodity
were taken from the related perpetual inventory account:
June 1
Balance
25 units at $60
6
Sale
20 units
8
Purchase
20 units at $61
16
Sale
10 units
20
Purchase
20 units at $62
23
Sale
25 units
30
Purchase
15 units at $63
Calculate the cost of the ending inventory at June 30, using (a)
the first-in, first-out (FIFO) method and (b) the last-in,
first-out (LIFO) method. Identify...
The following data regarding purchases and sales of a commodity were taken from the related perpetual...
The following data regarding purchases and sales of a commodity
were taken from the related perpetual inventory account: (30
points)
June 1
Balance
25 units at $60
6
Sale
20 units at $70
8
Purchase
20 units at $61
16
Sale
10 units at $70
20
Purchase
20 units at $62
23
Sale
25 units at $70
30
Purchase
15 units at $63
Record the inventory, purchases, cost of goods sold and sales...
The following data regarding purchases and sales of a commodity were taken from the related perpetual...The following data regarding purchases and sales of a commodity
were taken from the related perpetual inventory account: (30
points) June 1 Balance 25 units at $60 6 Sale 20 units at $70 8
Purchase 20 units at $61 16 Sale 10 units at $70 20 Purchase 20
units at $62 23 Sale 25 units at $70 30 Purchase 15 units at $63
Record the inventory, purchases, cost of goods sold and sales in a
perpetual inventory record similar...
The following data regarding purchases and sales of a commodity were taken from the related perpetual...The following data regarding purchases and sales of a commodity
were taken from the related perpetual inventory account: June 1
Balance 25 units at $60 6 Sale 20 units 8 Purchase 20 units at $61
16 Sale 10 units 20 Purchase 20 units at $62 23 Sale 25 units 30
Purchase 15 units at $63 Calculate the cost of the ending inventory
at June 30, using (a) the first-in, first-out (FIFO) method and (b)
the last-in, first-out (LIFO) method. Identify...
The following data regarding purchases and sales of a commodity were taken from the related perpetual...The following data regarding purchases and sales of a commodity
were taken from the related perpetual inventory account:
June 1
Balance
25 units at $60
6
Sale
20 units
8
Purchase
20 units at $61
16
Sale
10 units
20
Purchase
20 units at $62
23
Sale
25 units
30
Purchase
15 units at $63
Calculate the cost of the ending inventory at June 30, using (a)
the first-in, first-out (FIFO) method and (b) the last-in,
first-out (LIFO) method. Identify...
The following data regarding purchases and sales of a commoditywere taken from the related perpetual...The following data regarding purchases and sales of a commodity
were taken from the related perpetual inventory account:June 1Balance25 units at $606Sale20 units8Purchase20 units at $6116Sale10 units20Purchase20 units at $6223Sale25 units30Purchase15 units at $63Calculate the cost of the ending inventory at June 30, using (a)
the first-in, first-out (FIFO) method and (b) the last-in,
first-out (LIFO) method. Identify the quantity, unit price, and
total cost of each lot in the inventory.(a) First-In, First-Out (FIFO):Date: JuneQuantityUnit PriceTotal costunits at$$units at$BLANKTotal$(b) Last-In,...
Beginning inventory, purchases, and sales data on Commodity A, as taken from Rich Company’s perpetual inventory...Beginning inventory, purchases, and sales data on
Commodity A, as taken from Rich Company’s perpetual inventory
account, were as follows:
July 1 Beginning
inventory 5
units @4 =$20
15
units $5 =$75
6
SALE 16
UNITS
10
PURCHASE 15
UNITS @$6
20
SALE 11
UNITS
30
PURCHASE 10
UNITS @$7
31
SALE 7
UNITS
Determine the cost of the ending inventory at JULY 31,
by: (a) the first- in-first- out method, and (b) the last-in-
first- out method.
5. The data regarding purchases and sales of a commodity is given in the table below:...5. The data regarding purchases and sales of a commodity is
given in the table below:
Date
Description
Units
Unit Cost
May/01
Inventory
25
$40
May/06
Sale
20
$50
May/08
Purchase
20
$41
May/16
Sale
10
$55
May/20
Purchase
20
$42
May/23
Sale
25
$55
May/30
Purchase
15
43
Instructions:
Determine the cost of the inventory balance at May/31, using the
FIFO and LIFO
Perpetual.
Determine the cost of the inventory balance at May/31 using the
Average Cost
periodic method....
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions...Sales-Related and Purchase-Related Transactions Using Perpetual
Inventory System
The following were selected from among the transactions
completed by Babcock Company during November of the current
year:
Nov. 3.
Purchased merchandise on account from Moonlight Co., list price
$82,000, trade discount 25%, terms FOB destination, 2/10,
n/30.
4.
Sold merchandise for cash, $40,180. The cost of the goods sold
was $22,910.
5.
Purchased merchandise on account from Papoose Creek Co.,
$50,750, terms FOB shipping point, 2/10, n/30, with prepaid freight
of...
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions...Sales-Related and Purchase-Related Transactions Using Perpetual
Inventory System
The following were selected from among the transactions
completed by Babcock Company during November of the current
year:
Nov. 3.
Purchased merchandise on account from Moonlight Co., list price
$91,000, trade discount 20%, terms FOB destination, 2/10,
n/30.
4.
Sold merchandise for cash, $36,270. The cost of the goods sold
was $23,850.
5.
Purchased merchandise on account from Papoose Creek Co.,
$50,600, terms FOB shipping point, 2/10, n/30, with prepaid freight
of...
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