A company using the periodic inventory system has merchandise inventory costing $333 on hand at the beginning of a period. During the period, merchandise costing$767 is purchased. At year-end, merchandise inventory costing $116 is on hand. The cost of merchandise sold for the year isOa. $116Ob. $984Oc. $333Od. $1,216

Formula to calculate cost of merchandise sold: Cost of merchandise sold = Opening merchandise…

Answered: A company using the periodic inventory…

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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Litton Industries uses a perpetual inventory system. The company began its fiscal year with an inventory of $267,000. Purchases of merchandise on account during the year totaled $845,000. Merchandise costing $902,000 was sold on account for $1,420,000. Prepare these journal entries to record these transactions. 1. Record the merchandise purchased on account for $845,000. 2. Merchandise costing $902,000 was sold on account for $1,420,000. Record the sale. 3. Merchandise costing $902,000 was sold on account for $1,420,000. Record the cost of goods sold.
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The following units of a particular item were availlable for sale during the calendar year: Jan. 1 Inventory 4,100 units at $39 Apr. 19 Sale 2,300 units June 30 Purchase 4,500 units at $43 Sept. 2 Sale 5,200 units Nav. 15 Purchase 2,100 units at $46 The firm maintains a perpetual inventory system. Determine the cost of goods ssold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the illustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method Cost of Goods Sold Inventory Purchases Quantity Total Cos Quantity Unit Cost Total Cost Unit Cost Unit Cost Total Cost Quantity Date Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Dec. 31 Balances
The following units of an inventory item were available for sale during the year: Beginning inventory 9 units at $52 First purchase 19 units at $54 Second purchase 26 units at $55 Third purchase 13 units at $57 The firm uses the periodic inventory system. During the year, 22 units of the item were sold. The value of ending inventory rounded to the nearest dollar using average cost is (Round average cost per unit to three decimal places.) a. $1,170 b. $1,144 Oc. $2,462 Od. $1,236
The following units of an inventory item were available for sale during the year: Beginning inventory 8 units at $50 First purchase 16 units at $51 Second purchase 21 units at $52 Third purchase 15 units at $54 The firm uses the periodic inventory system. During the year, 22 units of the item were sold. The value of ending inventory rounded to the nearest dollar using average cost is (Round average cost per unit to three decimal places.) Oa. $1,174 Ob. $1,975 Oc. $1,100 Od. $1,114
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Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,930 $ 7 For the current year: Purchase, March 21, 6,080 6 Purchase, August 14, 100 4 Inventory, December 31, current year 2,980 Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.
The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetual inventory system. Nov. 3 Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4 Sold merchandise for cash, $36,900. The cost of the goods sold was $20,480. 5 Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 added to the invoice. 6 Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. 8 Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270. 15 Paid…
Marigold Corp. uses a perpetual inventory system. The company had the following inventory transactions in April. April 3 Purchased merchandise from DeVito Ltd. for $33,000, terms 2/10, n/30, FOB shipping point. The appropriate company paid freight costs of $750 on the merchandise purchased on April 3. Purchased supplies on account for $5,400. Returned merchandise to DeVito and received a credit of $4,200. The merchandise was returned to inventory for future resale. 6 7 30 Paid the amount due to DeVito in full.
Journalize each of the following transactions assuming a perpetual inventory system. April 5 Sold merchandise to a customer for $6,900; terms 2/10, n/30 (cost of sales $4,180). 7 Made a cash sale of $5,200 of merchandise to a customer today (cost of sales $3,160). 8 Sold merchandise for $12,500; terms 2/10, n/30 (cost of sales $7,540). 15 Collected the amount owing from the credit customer of April 5. 4 The customer of April 8 paid the balance owing. May View transaction list Journal entry worksheet 1 2 3 4 6. 8 Record sale of merchandise for $6,900; terms 2/10, n/30. Note: Enter debits before credits. Date General Journal Debit Credit Apr. 05
A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account with terms of 5/7, n/20. Which of the following correctly records the payment made 15 days after the date of invoice? A. Accounts Payable 1,130,000 Merchandise Inventory 1,130,000 B. Accounts Payable 1,130,000 Merchandise Inventory 56,500 Cash 1,073,500 C. Accounts Payable 1,130,000 Cash 1,130,000 D. Cash 1,130,000 Accounts Payable 1,130,000
At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $15.20 per unit: Transactions Units Inventory, January 1 560 Amount $1,792 Purchase, January 12 540 Purchase, January 26 140 2,808 1,008 Sale Sale (420) (200) Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 2a. Between FIFO and…

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