c) d) Assessment #1 _Cost Classification Inventory valuation Question 2 RAZR WIRELESS sells a variety of mobile telephone accessories including several brands of Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. RAZR began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the "TOZO T6" earbuds: October 8 October 31 November 4 November 10 November 30 December 4 December 10 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. December 30 December 31 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) A new batch of 67 cases was purchased at a total cost of $465,650 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% on each case. 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the storeroom. Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required: During the month 60 cases were sold, yielding total revenue of $621,000 A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. Journalize the transactions for the month of October, assuming the freight was paid by cash and the business uses a: Periodic inventory system. Perpetual inventory system Explain the difference between a product cost and a period cost. How does the product cost of a manufacturer differ from the product cost of a merchandiser?

c) d) Assessment #1 _Cost Classification Inventory valuation Question 2 RAZR WIRELESS sells a variety of mobile telephone accessories including several brands of Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. RAZR began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the "TOZO T6" earbuds: October 8 October 31 November 4 November 10 November 30 December 4 December 10 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. December 30 December 31 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) A new batch of 67 cases was purchased at a total cost of $465,650 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% on each case. 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the storeroom. Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required: During the month 60 cases were sold, yielding total revenue of $621,000 A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. Journalize the transactions for the month of October, assuming the freight was paid by cash and the business uses a: Periodic inventory system. Perpetual inventory system Explain the difference between a product cost and a period cost. How does the product cost of a manufacturer differ from the product cost of a merchandiser?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Transcribed Image Text:c) d) Assessment #1 _Cost Classification Inventory valuation Question 2 RAZR WIRELESS sells a variety of mobile telephone accessories including several brands of Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. RAZR began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the "TOZO T6" earbuds: October 8 October 31 November 4 November 10 November 30 December 4 December 10 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. December 30 December 31 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) A new batch of 67 cases was purchased at a total cost of $465,650 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% on each case. 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the storeroom. Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required: During the month 60 cases were sold, yielding total revenue of $621,000 A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. Journalize the transactions for the month of October, assuming the freight was paid by cash and the business uses a: Periodic inventory system. Perpetual inventory system Explain the difference between a product cost and a period cost. How does the product cost of a manufacturer differ from the product cost of a merchandiser?

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