Question

In: Accounting

Part A Marks: 10 Beyer Ltd balances its accounts at month-end, using special journals, and the...

Part A

Marks: 10

Beyer Ltd balances its accounts at month-end, using special journals, and the perpetual inventory system with the FIFO cost flow assumption. All purchases and sales of inventory are made on credit. The end of the reporting period is June 30. All transactions include GST. Sales and purchases of product JINX-87 in May 2019 were as follows.

Date

Transaction

No.

Unit cost

May 1

May 7

May 11

May 17

May 21

May 24

May 29

Inventory on hand

Purchase (GST inclusive)

Sale @ $38.50 per unit (GST Inclusive)

Purchase (GST Inclusive)

Purchase return (GST Inclusive)

Sale @ $39.60 per unit (GST Inclusive)

Sale return (on May 24 sale)

50

20

54

30

10

30

8

$10.00

$12.10

$13.20

$12.10

Requirements:

  1. For product JINX-87, calculate May 2019’s cost of sales and cost of inventory on hand on as at May 31, 2019.
  2. Prepare any journal entries required on June 30, 2019, to correct any errors and to adjust the inventory account. Refer to the provided Chart of Accounts for the appropriate account names.

Part A:

For product JINX-87, calculate May 2019’s cost of sales and cost of inventory on hand as at May 31, 2019

Cost of inventory on hand (ending inventory

$

Cost of sales

$

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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