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 November 1 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 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. December 2 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. Under the perpetual inventory system, the transaction on April 10 would be recorded as: 1. Merchandise Inventory Freight-In $594,500 40,500 Accounts Payable $635,000 II. Merchandise Inventory $635,000 Accounts Payable Cash $594,500 40,500 II. Purchases $594,500 Accounts Payable $594,500 Freight-In Cash 40,500 40,500 IV. Purchases $635,000 Accounts Payable $635,000
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 November 1 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 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. December 2 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. Under the perpetual inventory system, the transaction on April 10 would be recorded as: 1. Merchandise Inventory Freight-In $594,500 40,500 Accounts Payable $635,000 II. Merchandise Inventory $635,000 Accounts Payable Cash $594,500 40,500 II. Purchases $594,500 Accounts Payable $594,500 Freight-In Cash 40,500 40,500 IV. Purchases $635,000 Accounts Payable $635,000
Chapter4: Job Order Costing
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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
November 1
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 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
Under the perpetual inventory system, the transaction on April 10 would be recorded as:
1. Merchandise Inventory
Freight-In
$594,500
40,500
Accounts Payable
$635,000
II. Merchandise Inventory
Accounts Payable
Cash
$635,000
$594,500
40,500
II. Purchases
$594,500
Accounts Payable
$594,500
Freight-In
40,500
Cash
40,500
IV. Purchases
$635,000
Accounts Payable
$635,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc8b46fe-3b4e-40ea-990c-f194d49c409c%2Fe2de216a-1e88-45b0-8bfa-fc7a34c84e83%2F8rkubrp_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
November 1
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 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
Under the perpetual inventory system, the transaction on April 10 would be recorded as:
1. Merchandise Inventory
Freight-In
$594,500
40,500
Accounts Payable
$635,000
II. Merchandise Inventory
Accounts Payable
Cash
$635,000
$594,500
40,500
II. Purchases
$594,500
Accounts Payable
$594,500
Freight-In
40,500
Cash
40,500
IV. Purchases
$635,000
Accounts Payable
$635,000
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