Litton Industries uses a perpetual inventory system. The company began its fiscal year with inventory of $267,000. Purchases of merchandise on account during the year totaled $845,000. Merchandise costing $902,000 was sold on account for $1,420,000. Prepare the journal entries to record these transactions.
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Litton Industries uses a perpetual inventory system. The company began its fiscal year with inventory of $267,000. Purchases of merchandise on account during the year totaled $845,000. Merchandise costing $902,000 was sold on account for $1,420,000. Prepare the
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- A retailer uses the periodic inventory system. At year end, the following information was available: Beginning inventory, $52,000; Freight out, $11,500; Purchase returns, $19,500; Ending inventory, $71,400; Freight in, $16,300, and Purchases, $556,000. What was the retailer’s cost of goods sold for the year? Select one: a. $531,900 b. $542,200 c. $533,400 d. $532,100 e. $531,800Cullumber Company uses the perpetual inventory system. It began operations in October. October through December, the accounting information system shows that purchases of $68200 were made. Cullumber returned goods with a cost of $4200. Inventory with a cost of $51300 was sold during the three months. These were the only inventory transactions during the period. A physical count of inventory at the end of December reported total inventory of $11000 remains on hand. An adjustment to bring the perpetual inventory count in line with the physical count would include a debit to Inventory Over and Short (or Cost of Goods Sold) for Ⓒ$2500. Ⓒ$4200. $1700. $3400.Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18 March 25 March 29 ) Periodic FIFO Beginning inventory Purchases. March 5 March 18 March 25 Activities Beginning inventory Purchase Sales Total Purchase Purchase Sales Totals b) Periodic LIFO For specific identification, units sold include 50 units from beginning inventory, 385 units from the March 5 purchase, 55 units from the March 18 purchase, and 135 units from the March 25 purchase. # of units oblem 6-2AA (Algo) Part 3 Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. ote: Round your "average cost per unit" to 2 decimal places. Cost of Goods Available for Sale Cost of Goods Available for Sale $ 5,750 115 $ Cost per unit 680 415 $ 55.00 150 $ 60.00 Units Acquired at Cost 115 units $50 per unit @$55 per unit 415 units 50.00 # of units 150 units…
- Crane Corporation uses the perpetual inventory system and began business on April 1. During the month Crane made inventory purchases of $84,200 on terms of 3/10, n/30. Crane returned $4,500 worth of goods during the month. Crane made all payments in time to take advantage of the offered cash discounts during the month. Crane sold inventory on account with a value of $72,200 and a markup of 30% on the cost. These were the only inventory transactions during the month. Leo uses the gross method in accounting for cash discounts. Prepare the journal entries related to: (a) Prepare the journal entry related to the purchase of goods. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit CreditA company that uses the perpetual inventory system purchased inventory for $1,130,000 on account with terms of 5/7, n/20. Which of the following correctly records the payment made 15 days after the date of invoice? A. Accounts Payable 1,130,000 Merchandise Inventory 1,130,000 B. Accounts Payable 1,130,000 Merchandise Inventory 56,500 Cash 1,073,500 C. Accounts Payable 1,130,000 Cash 1,130,000 D. Cash 1,130,000 Accounts Payable 1,130,000To more efficiently manage its inventory, Telnex Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its inventory during the year: January 1 Beginning inventory-29,000 units. February 12 Purchased 79,000 units for $14.30 each. April 30 Sold 50,000 units for $21.80 each. July 22 Purchased 59,000 units for $14.60 each. September 9 Sold 79,000 units for $21.80 each. November 17 Purchased 49,000 units for $15.00 each. December 31 Ending inventory-87,000 units. Required: 1. Determine the amount Telnex would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. Beginning inventory under FIFO was 29,000 units with a cost of $14.00 each. 2. Determine the amount Telnex would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system.…
- Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Ending inventory Cost of goods sold FIFO Units 1,960 LIFO 5,100 2,950 4,030 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount. Unit Cost $5 Average Cost 7 8Riley Kilgo Inc. purchased inventory costing $100,000 and sold 80% of the goods for $240,000. All purchases and sales were on account. Kilgo later collected 20% of the accounts receivable. Journalize these transactions for Kilgo, which uses the perpetual inventory system. For these transactions, show what Kilgo will report for inventory, revenues, and expenses on its financial statements. Report gross profit on the appropriate statement.Would you like to help me please?
- Donaldson Corporation uses a periodic inventory system. On January 1, inventory is $253,000. On April 5, Donaldson sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________. Group of answer choices debit Accounts Receivable and credit Sales Revenue; debit Cost of Goods Sold and credit Inventory debit Cash and Cost of Goods Sold and credit Sales Revenue and Inventory debit Accounts Receivable and credit Sales Revenue debit Cash and credit Sales RevenueLarkspur, Inc. uses a perpetual inventory system. Its beginning inventory consists of 210 units that cost $210 each. During August, the company purchased 310 units at $210 each, returned 6 units for credit, and sold 410 units at $ 360 each. Journalize the August transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record purchase of inventory) (To record purchase return of inventory) (To record sales)The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $21,200 was sold for $39,900 under terms 2/20, net/30. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $1,520. The merchandise had cost Ozark $920. All customers paid their accounts within the discount period. Selling and administrative expenses amounted to $4,200. Interest expense paid amounted to $360. Land that had cost $8,000 was sold for $9,250 cash. Requireda. Determine the amount of net sales. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Prepare a multistep income statement. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.) c. Where would the interest expense be shown on the statement of cash flows? Operating activities…
