Task #2:Narrative:Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system.All sales returns from customers result in goods being returned to inventory, if it is not damaged.You are provided with the following information for Avtosh LLC for the month of November, 2021.Assume that all amounts are settled in cash, no credit transactions.|Description1-Nov Beginning inventory6-Nov PurchaseQuantity Unit cost or selling price$14,000$15,000$21,000Date701208-Nov Sale8012-Nov Sale return*10$21,000$19,000$19,00015-Nov Purchase4016-Nov Purchase return520-Nov Sale100$26,00025-Nov Purchase50$16,000*includes two damaged car which has scrap value estimated to be at 20% of the its purchase priceInstruction:|- Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following:a) cost of goods soldb) ending inventoryc) gross profit|- Compare the results of each inventory valuation method|- For each date, prepare journal entry (using AVCO method only) the Company should post to reflect the transaction

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Description: Task #2:Narrative:Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system.All sales returns from customers result in goods being returned to inventory, if it is not damaged.You are provided wi

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Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system. All sales returns from customers result in goods being returned to inventory, if it is not damaged. You are provided with the following information for Avtosh LLC for the month of November, 2021. Assume that all amounts are settled in cash, no credit transactions. Description 1-Nov Beginning inventory Quantity Unit cost or selling price $14,000 $15,000 $21,000 $21,000 $19,000 Date 70 6-Nov Purchase 120 8-Nov Sale 80 12-Nov Sale return* 10 15-Nov Purchase 40 $19,000 $26,000 $16,000 16-Nov Purchase return 5 100 50 20-Nov Sale 25-Nov Purchase *includes two damaged car which has scrap value estimated to be at 20% of the its purchase price Instruction: - Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following: a) cost of goods sold b) ending inventory c) gross profit

Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system. All sales returns from customers result in goods being returned to inventory, if it is not damaged. You are provided with the following information for Avtosh LLC for the month of November, 2021. Assume that all amounts are settled in cash, no credit transactions. Description 1-Nov Beginning inventory Quantity Unit cost or selling price $14,000 $15,000 $21,000 $21,000 $19,000 Date 70 6-Nov Purchase 120 8-Nov Sale 80 12-Nov Sale return* 10 15-Nov Purchase 40 $19,000 $26,000 $16,000 16-Nov Purchase return 5 100 50 20-Nov Sale 25-Nov Purchase *includes two damaged car which has scrap value estimated to be at 20% of the its purchase price Instruction: - Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following: a) cost of goods sold b) ending inventory c) gross profit

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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