Jerome's Fashion Dezigns sells a variety of items of clothing including footwear for men and uses a perpetual inventory system. The business began the last quarter of 2017 with 25 pairs of the "Jordan" brand at a total cost of $152,500. The following transactions, relating to the Jordan brand, took place during the quarter. Purchased 100 pairs of sneakers on account at a cost of $5,945 per pair. In addition, Jerome paid $405 in cash on each pair of shoes to have the inventory shipped from the vendor's warehouse to Jerome's showroom. October 10 LOctobor 30 During tbo month 00 pairs woro sold at a unit solling prico of S8 255
Jerome's Fashion Dezigns sells a variety of items of clothing including footwear for men and uses a perpetual inventory system. The business began the last quarter of 2017 with 25 pairs of the "Jordan" brand at a total cost of $152,500. The following transactions, relating to the Jordan brand, took place during the quarter. Purchased 100 pairs of sneakers on account at a cost of $5,945 per pair. In addition, Jerome paid $405 in cash on each pair of shoes to have the inventory shipped from the vendor's warehouse to Jerome's showroom. October 10 LOctobor 30 During tbo month 00 pairs woro sold at a unit solling prico of S8 255
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Jerome's Fashion Dezigns sells a variety of items of clothing including
footwear for men and uses a perpetual inventory system. The business
began the last quarter of 2017 with 25 pairs of the "Jordan" brand at a
total cost of $152,500. The following transactions, relating to the Jordan
brand, took place during the quarter.
October 10
Purchased 100 pairs of sneakers on account at a cost of $5,945 per
pair. In addition, Jerome paid $405 in cash on each pair of shoes to
have the inventory shipped from the vendor's warehouse to Jerome's
showroom.
October 30
During the month 90 pairs were sold at a unit selling price of $8,255.
A new batch of 60 pairs was purchased on account at a total cost of
$406,500
November 1
November 14
5 pairs of the sneakers purchased on November 1 were found to be of
the wrong description and returned to the supplier
November 30
The sales for November were 60 pairs of sneakers which yielded total
sales revenue of $430,000.
Odail Thomas, a customer to whom 10 pairs were sold at the close of
business on November 30, returned 4 pairs of the sneakers, as they
were of the wrong colour.
December 2
Using the FIFO method, what is the ending inventory balance on November 1,
2017?
a. 70 pairs valued at $474,250
b. 70 pairs valued at $444,500
C.
95 pairs valued at $628,750
d. 95 pairs valued at $622,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9bede240-2ef0-4130-b475-cbbadae289bd%2F6906b04c-aacd-4192-9df5-2c1e4e6496a7%2Fjlgzdts_processed.png&w=3840&q=75)
Transcribed Image Text:Jerome's Fashion Dezigns sells a variety of items of clothing including
footwear for men and uses a perpetual inventory system. The business
began the last quarter of 2017 with 25 pairs of the "Jordan" brand at a
total cost of $152,500. The following transactions, relating to the Jordan
brand, took place during the quarter.
October 10
Purchased 100 pairs of sneakers on account at a cost of $5,945 per
pair. In addition, Jerome paid $405 in cash on each pair of shoes to
have the inventory shipped from the vendor's warehouse to Jerome's
showroom.
October 30
During the month 90 pairs were sold at a unit selling price of $8,255.
A new batch of 60 pairs was purchased on account at a total cost of
$406,500
November 1
November 14
5 pairs of the sneakers purchased on November 1 were found to be of
the wrong description and returned to the supplier
November 30
The sales for November were 60 pairs of sneakers which yielded total
sales revenue of $430,000.
Odail Thomas, a customer to whom 10 pairs were sold at the close of
business on November 30, returned 4 pairs of the sneakers, as they
were of the wrong colour.
December 2
Using the FIFO method, what is the ending inventory balance on November 1,
2017?
a. 70 pairs valued at $474,250
b. 70 pairs valued at $444,500
C.
95 pairs valued at $628,750
d. 95 pairs valued at $622,500
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