Exccutive ventory record for each of the 60 types of products the company kceps in stock. The follosing ransactions show the purchases and sales of a particular desk chair (product code DC-7) during September: Balance on hand, 50 units, cost $60 each Sept. 1 4. Purchase, 20 units, cost $65 each •........ $3.000 Sept. Sept. 8 Sept. 9 Sant. 20 ... 1,300 Sale, 35 units, sales price $100 each Purchase, 40 units, cost $65 each ....... 3,500 2,000 ..... ..... Sale, 60 units, sales price $100 sach its, cost $70 each * 6.000 2.800 550 ........·....n ... ...... ........
Exccutive ventory record for each of the 60 types of products the company kceps in stock. The follosing ransactions show the purchases and sales of a particular desk chair (product code DC-7) during September: Balance on hand, 50 units, cost $60 each Sept. 1 4. Purchase, 20 units, cost $65 each •........ $3.000 Sept. Sept. 8 Sept. 9 Sant. 20 ... 1,300 Sale, 35 units, sales price $100 each Purchase, 40 units, cost $65 each ....... 3,500 2,000 ..... ..... Sale, 60 units, sales price $100 sach its, cost $70 each * 6.000 2.800 550 ........·....n ... ...... ........
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...
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Question
![ventory record for each of the 60 types of products the company keeps in stock. The following Perptual Imentory Raco
Frecutive Suites, Inc., uses a perpetual inventory, systém. This system includes a perpetual in- pROnLNAN
transactions show the purchases and sales of a particular desk chair (product code DC-7) during pl Imentory Ruco
September:
Balance on hand, 50 units, cost $60 each ..,
Sept. 1
Sept.
Sept. 8
Sept. 9
Sept. 20
Sept. 25
Sept. 30 Sale, 5 units, sales price $110 each
...$3,000
4
Purchase, 20 unita, cost $65 each
...1,300
Sale, 35 units, sales price $100 each..
3,500
2,00
...6,000
Purchase, 40 units, cost $65 each
Sale, 60 units, sales price $100 each..
2.800
Purchase, 40 units, cost $70 each
550](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0ebcf10-e761-4d70-87a4-12f243fba312%2F72d663ac-a7bb-4c75-acb8-d66e3ee09a67%2Fdnfuxo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ventory record for each of the 60 types of products the company keeps in stock. The following Perptual Imentory Raco
Frecutive Suites, Inc., uses a perpetual inventory, systém. This system includes a perpetual in- pROnLNAN
transactions show the purchases and sales of a particular desk chair (product code DC-7) during pl Imentory Ruco
September:
Balance on hand, 50 units, cost $60 each ..,
Sept. 1
Sept.
Sept. 8
Sept. 9
Sept. 20
Sept. 25
Sept. 30 Sale, 5 units, sales price $110 each
...$3,000
4
Purchase, 20 unita, cost $65 each
...1,300
Sale, 35 units, sales price $100 each..
3,500
2,00
...6,000
Purchase, 40 units, cost $65 each
Sale, 60 units, sales price $100 each..
2.800
Purchase, 40 units, cost $70 each
550
![Instructions
2. Record the beginning inventory, the purchases, the cost of goodds sold, and the running hel.
ance on an inventory subsidiary rccord like the one illustrated on page 335). Usc the lastein
first out (LIFO) method.
b Prepare general journal entrics to record these purchases and salcs in Septemher. Assume that
all transactions were on account.
C. Explain why the company's choice of the LIFO method may result in a more accurate prc-
sentation of its income statement than its balance sheet.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0ebcf10-e761-4d70-87a4-12f243fba312%2F72d663ac-a7bb-4c75-acb8-d66e3ee09a67%2Fllprkb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Instructions
2. Record the beginning inventory, the purchases, the cost of goodds sold, and the running hel.
ance on an inventory subsidiary rccord like the one illustrated on page 335). Usc the lastein
first out (LIFO) method.
b Prepare general journal entrics to record these purchases and salcs in Septemher. Assume that
all transactions were on account.
C. Explain why the company's choice of the LIFO method may result in a more accurate prc-
sentation of its income statement than its balance sheet.
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