Jackal Company reported that a flood recently destroyed many of the financial records. The entity used an average cost inventory valuation system. The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered: Ending inventory at July 31 60,000 units Total cost of units available for sale in July 1,452,100 Cost of goods sold during July 1,164,100 Cost of beginning inventory, July 1 4.00 per unit Gross profit on sales for July 935,900 Day Units Unit Cost Total Cost 5-Jul 55,000 5.10 280,500 11-Jul (53,000) 5.00 265,000 15-Jul 45,000 5.50 247,500 16-Jul 47,000 5.30 249,100 1. What is the number of units on July 1? 2. Refer to Jackal Company. How many units were sold during the month of July? 3. Refer to Jackal Company. What is the cost of the inventory on July 31?

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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Jackal Company reported that a flood recently destroyed many of the financial records. The entity used an average cost inventory valuation system.

The entity made a physical count at the end of each month in order to determine monthly ending inventory value. By examining various documents, the following data are gathered:

Ending inventory at July 31	60,000 units
Total cost of units available for sale in July	1,452,100
Cost of goods sold during July	1,164,100
Cost of beginning inventory, July 1	4.00 per unit
Gross profit on sales for July	935,900

Day	Units	Unit Cost	Total Cost
5-Jul	55,000	5.10	280,500
11-Jul	(53,000)	5.00	265,000
15-Jul	45,000	5.50	247,500
16-Jul	47,000	5.30	249,100

1. What is the number of units on July 1?

2. Refer to Jackal Company. How many units were sold during the month of July?

3. Refer to Jackal Company. What is the cost of the inventory on July 31?

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