Andrew is the owner of York Trading and the entity sells leather shoes. The entity uses the perpetual inventory system and the weighted average cost allocation method to record inventory. The transactions for June 2022 are listed below: 1. On 1 June 2022 the entity had 12 pairs of shoes on hand at a cost of R400 each. 2. The sales assistant fitted a pair of shoes while Andrew was out of the shop and spilled red cooldrink over the shoes. The stains cannot be removed and the shoes can no longer be sold. 3. On 5 June 2022 York Trading purchased 25 pairs of shoes at R500 each on credit from Fergie. 4. Received R4 900 in cash for 7 pairs of shoes that were sold on 7 June 2022. 5. Andrew and his brothers needed new shoes for their grandmother's funeral and he took 3 pairs of shoes from the storeroom.

Andrew is the owner of York Trading and the entity sells leather shoes. The entity uses the perpetual inventory system and the weighted average cost allocation method to record inventory. The transactions for June 2022 are listed below: 1. On 1 June 2022 the entity had 12 pairs of shoes on hand at a cost of R400 each. 2. The sales assistant fitted a pair of shoes while Andrew was out of the shop and spilled red cooldrink over the shoes. The stains cannot be removed and the shoes can no longer be sold. 3. On 5 June 2022 York Trading purchased 25 pairs of shoes at R500 each on credit from Fergie. 4. Received R4 900 in cash for 7 pairs of shoes that were sold on 7 June 2022. 5. Andrew and his brothers needed new shoes for their grandmother's funeral and he took 3 pairs of shoes from the storeroom.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Use the following information to calculate the a) value of inventory on hand on Mar 31, b) cost of goods sold and c) Gross Profit during March under Perpetual inventory system. a) FIFO b) Weighted Average Mar 1 Beginning Inventory 68 units @ $15.00 per unit 5 Purchase 140 units @ $15.50 per unit 9 Sale 94 units @ $19.00 per unit 11 Purchase 40 units @ $16.00 per unit 16 Purchase 78 units @ $16.50 per unit 20 Sale 116 units @ $19.50 per unit
Use the following information to complete the calculations below. Cost of goods sold $195,640 Inventory: Beginning of year 20,500 End of year 18,628 a. Compute inventory turnover. b. Compute average daily cost of goods sold using a 365 day year. c. Compute number of days' sales in inventory. Round your answer to one decimal place. days
Question: Langley Inc. inventory records for a particular development program show the following at October 31, 2020: At October 31, ten of these programs are on hand. Langley uses the perpetual inventory system. 1. Journalize for Langley: a. Total October purchases in one summary entry. All purchases were on credit. b. Total October sales and cost of goods sold in two summary entries. The selling price was $500 per unit, and all sales were on credit. Langley uses the FIFO inventory method. (Please show the calculations/where the number is from) Ex: I didn't understand the part of the answer for the entry Cost of Goods Sold & Inventory 1,710. 2. Under FIFO, how much gross profit would Langley earn on these transactions? What is the FIFO cost of Langley’s ending inventory?
Opening and closing inventory balances and purchases for the month of October 2020 for Haadiyah Hearing Ltd are as follows: Units Per unit Inventory, 1 October 7,000 $4.00 Purchase, 3 October 8,000 $4.10 Purchase, 15 October 11,000 $4.20 Purchase, 20 October 15,000 $4.25 Inventory, 31 October 20,000 - Required: Determine the cost of goods sold for October under each of the following cost flow assumptions: FIFO Weighted average LIFO
Sunland Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Balance, 1/1/20 Purchase, 1/28/20 Per Units unit price Total $6.00 $1260 Purchase, 1/15/20 150 210 O 180 O 300 O 30 O 330 150 5.40 5.60 810 840 An end of the month (1/31/20) inventory showed that 180 units were on hand. How many units did the company sell during January, 2020?
Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase on account, March 2 b. Cash sale, April 1 ($44 each) c. Purchase on account, June 30 d. Cash sale, August 1 ($44 each) Unit Units Cost 180 $ 28 290 30 (330) 230 (55) 34 TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred. Required: 1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.) a. Last-in, first-out. b.…
Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($100 each). c. Purchase, May 1 d. Sale, August 31 ($100 each) Units Unit Cost 1,500 $ 40 2,900 52 (1,150) 1,600 (1,600) 70 Assuming that for Specific identification method (item 1d) the March 14 sale was selected two-fifths from the beginning inventory and three-fifths from the purchase of January 30. Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: a. Last-in, first-out. b. Weighted average cost. c. First-in, first-out. d.…
Using the weighted mean method, determine the valuation of ending inventory on December. Assume 35 FitBits in inventory at the end of the year. (Round to the nearest whole dollar.) b. What was the Cost of Goods Sold (COGS)?
You have the following information for Bramble Inc. for the month ended June 30, 2022. Bramble uses a periodic inventory system. Date Description Quantity Unit Cost orSelling Price June 1 Beginning inventory 40 $31 June 4 Purchase 135 34 June 10 Sale 110 61 June 11 Sale return 15 61 June 18 Purchase 55 37 June 18 Purchase return 10 37 June 25 Sale 65 67 June 28 Purchase 35 41
Please help
Use the following information for the next two questions: Thursday Co. is estimating the cost of its inventory at month-end. The accountant determined the following: