Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December: Activity Units Purchase Price (per unit) Sale Price (per unit) Beginning inventory 10 $8.00 Purchase 1, Dec. 2 22 8.80 Purchase 2, Dec. 5 26 9.05 Sale 1, Dec. 7 19 $20.00 Sale 2, Dec. 10 25 20.00 Purchase 3, Dec. 12 12 9.80 Sale 3, Dec. 14 20 20.00 Anderson's uses a perpetual inventory system. All purchases and sales were for cash. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations.) Round your answers to the nearest cent. Cost of goods sold $fill in the blank b442affb1fd1044_5 Cost of ending inventory $fill in the blank b442affb1fd1044_6 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. If required, round your answers to the nearest cent. Dec. 2 Inventory fill in the blank 9b3454f7d029fea_2 Cash fill in the blank 9b3454f7d029fea_4 (Purchased inventory) Dec. 5 Inventory fill in the blank 9b3454f7d029fea_6 Cash fill in the blank 9b3454f7d029fea_8 (Purchased inventory) Dec. 7 Cash fill in the blank 9b3454f7d029fea_10 Sales Revenue fill in the blank 9b3454f7d029fea_12 (Recorded cash sales to customers) Dec. 7 Cost of Goods Sold fill in the blank 9b3454f7d029fea_14 Inventory fill in the blank 9b3454f7d029fea_16 (Recorded cost of goods sold) Dec. 10 Cash fill in the blank 9b3454f7d029fea_18 Sales Revenue fill in the blank 9b3454f7d029fea_20 (Recorded cash sales to customers) Dec. 10 Cost of Goods Sold fill in the blank 9b3454f7d029fea_22 Inventory fill in the blank 9b3454f7d029fea_24 (Recorded cost of goods sold) Dec. 12 Inventory fill in the blank 9b3454f7d029fea_26 Cash fill in the blank 9b3454f7d029fea_28 (Purchased inventory) Dec. 14 Cash fill in the blank 9b3454f7d029fea_30 Sales Revenue fill in the blank 9b3454f7d029fea_32 (Recorded cash sales to customers) Dec. 14 Cost of Goods Sold fill in the blank 9b3454f7d029fea_34 Inventory fill in the blank 9b3454f7d029fea_36 (Recorded cost of goods sold)

Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December: Activity Units Purchase Price (per unit) Sale Price (per unit) Beginning inventory 10 $8.00 Purchase 1, Dec. 2 22 8.80 Purchase 2, Dec. 5 26 9.05 Sale 1, Dec. 7 19 $20.00 Sale 2, Dec. 10 25 20.00 Purchase 3, Dec. 12 12 9.80 Sale 3, Dec. 14 20 20.00 Anderson's uses a perpetual inventory system. All purchases and sales were for cash. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations.) Round your answers to the nearest cent. Cost of goods sold $fill in the blank b442affb1fd1044_5 Cost of ending inventory $fill in the blank b442affb1fd1044_6 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. If required, round your answers to the nearest cent. Dec. 2 Inventory fill in the blank 9b3454f7d029fea_2 Cash fill in the blank 9b3454f7d029fea_4 (Purchased inventory) Dec. 5 Inventory fill in the blank 9b3454f7d029fea_6 Cash fill in the blank 9b3454f7d029fea_8 (Purchased inventory) Dec. 7 Cash fill in the blank 9b3454f7d029fea_10 Sales Revenue fill in the blank 9b3454f7d029fea_12 (Recorded cash sales to customers) Dec. 7 Cost of Goods Sold fill in the blank 9b3454f7d029fea_14 Inventory fill in the blank 9b3454f7d029fea_16 (Recorded cost of goods sold) Dec. 10 Cash fill in the blank 9b3454f7d029fea_18 Sales Revenue fill in the blank 9b3454f7d029fea_20 (Recorded cash sales to customers) Dec. 10 Cost of Goods Sold fill in the blank 9b3454f7d029fea_22 Inventory fill in the blank 9b3454f7d029fea_24 (Recorded cost of goods sold) Dec. 12 Inventory fill in the blank 9b3454f7d029fea_26 Cash fill in the blank 9b3454f7d029fea_28 (Purchased inventory) Dec. 14 Cash fill in the blank 9b3454f7d029fea_30 Sales Revenue fill in the blank 9b3454f7d029fea_32 (Recorded cash sales to customers) Dec. 14 Cost of Goods Sold fill in the blank 9b3454f7d029fea_34 Inventory fill in the blank 9b3454f7d029fea_36 (Recorded cost of goods sold)

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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Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December:

Activity	Units	Purchase Price (per unit)	Sale Price (per unit)
Beginning inventory	10		$8.00
Purchase 1, Dec. 2	22		8.80
Purchase 2, Dec. 5	26		9.05
Sale 1, Dec. 7	19			$20.00
Sale 2, Dec. 10	25			20.00
Purchase 3, Dec. 12	12		9.80
Sale 3, Dec. 14	20			20.00

Anderson's uses a perpetual inventory system. All purchases and sales were for cash.

3. Compute cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations.) Round your answers to the nearest cent.

Cost of goods sold	$fill in the blank b442affb1fd1044_5
Cost of ending inventory	$fill in the blank b442affb1fd1044_6

4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. If required, round your answers to the nearest cent.

Dec. 2	Inventory	fill in the blank 9b3454f7d029fea_2
	Cash		fill in the blank 9b3454f7d029fea_4
	(Purchased inventory)
Dec. 5	Inventory	fill in the blank 9b3454f7d029fea_6
	Cash		fill in the blank 9b3454f7d029fea_8
	(Purchased inventory)
Dec. 7	Cash	fill in the blank 9b3454f7d029fea_10
	Sales Revenue		fill in the blank 9b3454f7d029fea_12
	(Recorded cash sales to customers)
Dec. 7	Cost of Goods Sold	fill in the blank 9b3454f7d029fea_14
	Inventory		fill in the blank 9b3454f7d029fea_16
	(Recorded cost of goods sold)
Dec. 10	Cash	fill in the blank 9b3454f7d029fea_18
	Sales Revenue		fill in the blank 9b3454f7d029fea_20
	(Recorded cash sales to customers)
Dec. 10	Cost of Goods Sold	fill in the blank 9b3454f7d029fea_22
	Inventory		fill in the blank 9b3454f7d029fea_24
	(Recorded cost of goods sold)
Dec. 12	Inventory	fill in the blank 9b3454f7d029fea_26
	Cash		fill in the blank 9b3454f7d029fea_28
	(Purchased inventory)
Dec. 14	Cash	fill in the blank 9b3454f7d029fea_30
	Sales Revenue		fill in the blank 9b3454f7d029fea_32
	(Recorded cash sales to customers)
Dec. 14	Cost of Goods Sold	fill in the blank 9b3454f7d029fea_34
	Inventory		fill in the blank 9b3454f7d029fea_36
	(Recorded cost of goods sold)

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