Hobart Sign Company began the month of June with an inventory of 50 signs that cost a total of $1,500. Hobart purchased and sold merchandise on account as follows: June 3 Purchase ……………………………….. 60 signs @ $35 each June 8 Sale …………………………………….... 100 signs @ $60 each June 18 Purchase ……………………………….. 90 signs @ $40 each June 28 Sale …………………………………….... 70 signs @ $70 each Hobart uses the FIFO cost method. Cash payments, on account, totaled $5,000. Operating expenses were $2,700; Hobart paid two-thirds in cash and accrued the rest as Accounts Payable. i) Prepare a perpetual inventory record, at FIFO cost, for this merchandise. ii) Make journal entries to record the company’s transactions iii)Prepare an income statement for Hobart Sign Company for the month ended June 30
Question 1
Hobart Sign Company began the month of June with an inventory of 50 signs that cost a total of
$1,500. Hobart purchased and sold merchandise on account as follows:
June 3 Purchase ……………………………….. 60 signs @ $35 each
June 8 Sale …………………………………….... 100 signs @ $60 each
June 18 Purchase ……………………………….. 90 signs @ $40 each
June 28 Sale …………………………………….... 70 signs @ $70 each
Hobart uses the FIFO cost method. Cash payments, on account, totaled $5,000. Operating expenses
were $2,700; Hobart paid two-thirds in cash and accrued the rest as Accounts Payable.
i) Prepare a perpetual inventory record, at FIFO cost, for this merchandise.
ii) Make
iii)Prepare an income statement for Hobart Sign Company for the month ended June 30
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