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 October 30 November 1 November 14 November 30 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. December 2 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 5 pairs of the sneakers purchased on November 1 were found to be of the wrong description and returned to the supplier The sales for November wore 60 pairs of sneakers which yielded total sales revenue of $430,000. Odall 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 Using the FIFO method, what is the ending inventory balance on November 1, 2017? a. 95 pairs valued at $622,500 b. 70 pairs valued at $444,500 c. 70 pairs valued at $474,250 d. 95 pairs valued at $628,750

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:27 ut of E 20 F3 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 October 30 November 1 November 14 November 30 December 2 $ 4 Odall 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 Using the FIFO method, what is the ending inventory balance on November 1, 2017? 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 R 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 F 5 pairs of the sneakers purchased on November 1 were found to be of the wrong description and returned to the supplier i The sales for November were 60 pairs of sneakers which yielded total sales revenue of $430,000. a. a. 95 pairs valued at $622,500 b. 70 pairs valued at $444,500 c. 70 pairs valued at $474,250 d. 95 pairs valued at $628,750 900 000 F4 5 tv T G NOV 10 ^ 6 MacBook Air F6 Y H & 7 F7 U * 8 A DII F8 Time left 0:30:27 ( 9 Next page DD F9 W ) 0 F10 1 2 P 10 11 19 20 28 29 Finish atte

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