Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the companycontained the following information:AccountCreditDebitMerchandise inventory, 7/1/1532,000Sales380,000Sales returns12,000Purchases240,000Purchase discounts6,000Purchase returns10,000Freight-in17,000In addition, you determine that the June 30, 2016, inventory balance is $40,000.Required:1. Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2016.2. Prepare the year-end adjusting entry to record cost of goods sold.

Cost of goods sold indicates the costs involved for the inventory sold by the business in a specific…

Answered: Askew Company uses a 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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[The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 355 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory Sales Purchase Sales Purchase Totals Units Acquired at Cost @ $ 14.00 = @ $ 13.00 = 215 units 160 units 355 units 730 units $ 11.00 = $ 3,010 2,080 3,905 $ 8,995 Units sold at Retail 165 units 190 units 355 units @ @ $23.00 $23.00 The Company uses a periodic inventory system. For specific identification, ending inventory consists of 355 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold…
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