Classique Designs sells a variety of merchandise, including school shoes for girls. The business began the last quarter of 2013 with 30 pairs of the "Aerosoles" brand at a total cost of $54,000. The following transactions, relating to the "Aerosoles' brand were completed during the quarter: October 3 October 15 Purchased 45 pairs of shoes at a cost of $1,900 each. Sold 55 pairs to Casually Elegant Ltd at a unit price of $2,780 Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5 October 26 Sold 60 pairs to Best City Store which yielded total sales revenue of S192,000. Owing to an increased demand for this brand, the manager of Classique purchased 8o additional pairs of the "Aerosole" brand at a unit cost of $2,500, but additionally there was freight charge of S100 on each pair. November 10 November 14 Sold 60 pairs of shoes to Big Buy Company at a price of $3,6oo each. A physical stock count on that date revealed that there were 42 pairs of the Aerosoles" brand in the warehouse. November 24 November 30 December 4 December 15 Purchased 75 pairs of shoes at a rotal cost of $213,750. S pars of the shoes purchased on December 4 were returned to the supplier as they were of the wrong deseription. December 30 Sold 70 pairs to Regal Ltd. at a unit selling price of S4 400. All purchases were on account and received on the dates stated and Classique Designs uses the FIFO method to account for inventory. Required: Prepare a perpetual inelytory record for Classique Designs, to determine the value of ending inventory at December 31, 2013, and the total amount to be assigned to cost of goods sold for the period. ii) Calculate the gross profit for the period. You are told that 15 of the units sold on November a, 2013 were on account. State the journal entries pecessary to record the transactions oa November 14 and November 24, assuming the -Periodic inventory system. -Perpetual inventory system. business uses the:

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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Transcribed Image Text:Classique Designs sells a variety of merchandise, including school shoes for girls. The business began the last quarter of 2013 with 30 pairs of the "Aerosoles" brand at a total cost of $54,000. The following transactions, relating to the "Aerosoles' brand were completed during the quarter: October 3 October 15 Purchased 45 pairs of shoes at a cost of $1,900 each. Sold 55 pairs to Casually Elegant Ltd at a unit price of $2,780 Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5 October 26 Sold 60 pairs to Best City Store which yielded total sales revenue of S192,000. Owing to an increased demand for this brand, the manager of Classique purchased 8o additional pairs of the "Aerosole" brand at a unit cost of $2,500, but additionally there was freight charge of S100 on each pair. November 10 November 14 Sold 60 pairs of shoes to Big Buy Company at a price of $3,6oo each. A physical stock count on that date revealed that there were 42 pairs of the Aerosoles" brand in the warehouse. November 24 November 30 December 4 December 15 Purchased 75 pairs of shoes at a rotal cost of $213,750. S pars of the shoes purchased on December 4 were returned to the supplier as they were of the wrong deseription. December 30 Sold 70 pairs to Regal Ltd. at a unit selling price of S4 400. All purchases were on account and received on the dates stated and Classique Designs uses the FIFO method to account for inventory. Required: Prepare a perpetual inelytory record for Classique Designs, to determine the value of ending inventory at December 31, 2013, and the total amount to be assigned to cost of goods sold for the period. ii) Calculate the gross profit for the period. You are told that 15 of the units sold on November a, 2013 were on account. State the journal entries pecessary to record the transactions oa November 14 and November 24, assuming the -Periodic inventory system. -Perpetual inventory system. business uses the:

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