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5. Screnity Books has the following transactions in August related to merchandise inventory. Aug. 1 Beginning merchandise inventory, 10 books @ $15 each Sold 3 books @ $20 each 12 Purchased 8 books @ $18 each 15 Sold 9 books @ $20 each 20 Purchased 4 books @ $20 each 28 Sold 5 books @ $25 each a. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month: August 3: 3 books costing $15 each August 15: 4 books costing $15 each and 5 books costing $18 each August 28: 2 books costing $18 each and 3 books costing $20 each b. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. c. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the LIFO inventory costing method.

5. Screnity Books has the following transactions in August related to merchandise inventory. Aug. 1 Beginning merchandise inventory, 10 books @ $15 each Sold 3 books @ $20 each 12 Purchased 8 books @ $18 each 15 Sold 9 books @ $20 each 20 Purchased 4 books @ $20 each 28 Sold 5 books @ $25 each a. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month: August 3: 3 books costing $15 each August 15: 4 books costing $15 each and 5 books costing $18 each August 28: 2 books costing $18 each and 3 books costing $20 each b. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. c. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the LIFO inventory costing method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Try It! 5. Serenity Books has the following transactions in August related to merchandise inventory. Aug 1 Beginning merchandise inventory, 10 books @ $15 each Sold 3 books @ $20 each 12 Purchased 8 books @ $18 each 15 Sold 9 books @ $20 each 20 Purchased 4 books @ $20 each 28 Sold 5 books @ $25 each a. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month: August 3: 3 books costing $15 each August 15: 4 books costing $15 each and 5 books costing $18 each August 28: 2 books costing $18 each and 3 books costing $20 each b. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. c. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the LIFO inventory costing method. d. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the weighted-average inventory costing method. Round weighted-average unit cost to the nearest cent and total cost to the nearest dollar.
Transcribed Image Text:Try It! 5. Serenity Books has the following transactions in August related to merchandise inventory. Aug 1 Beginning merchandise inventory, 10 books @ $15 each Sold 3 books @ $20 each 12 Purchased 8 books @ $18 each 15 Sold 9 books @ $20 each 20 Purchased 4 books @ $20 each 28 Sold 5 books @ $25 each a. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month: August 3: 3 books costing $15 each August 15: 4 books costing $15 each and 5 books costing $18 each August 28: 2 books costing $18 each and 3 books costing $20 each b. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. c. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the LIFO inventory costing method. d. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the weighted-average inventory costing method. Round weighted-average unit cost to the nearest cent and total cost to the nearest dollar.
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