New Tech Cycles started March with 5 bicycles that cost $48 each. On March 16, New Tech purchased 30 bicycles at$55 each. On March 31, New Tech sold 13 bicycles for $106 each.Requirements1. Prepare New Tech Cycle's perpetual inventory record assuming the company uses the LIFO inventory costingmethod.2.Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandiseinventory on account.Requirement 1. Prepare New Tech Cycle's perpetual inventory record assuming the company uses the LIFO inventorycosting method.Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventoron hand balances after each transaction. Once all of the transactions have been entered into the perpetual record,calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goodssold, enter the first layer out under LIFO costing first. For inventory on hand, enter the oldest inventory layer first.Abbreviation used: QTY = Quantity; Tot. = Total)New Tech CyclesDateMar. 1PurchasesQTY Unit Cost Tot. CostCost of Goods SoldQTY Unit Cost Tot. CostInventory on HandQTY Unit Cost Tot. Cost

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Description: New Tech Cycles started March with 5 bicycles that cost $48 each. On March 16, New Tech purchased 30 bicycles at$55 each. On March 31, New Tech sold 13 bicycles for $106 each.Requirements1. Prepare New Tech Cycle's perpetual inventory record assumin

The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Using…

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New Tech Cycles started March with 5 bicycles that cost $48 each. On March 16, New Tech purchased 30 bicycles at $55 each. On March 31, New Tech sold 13 bicycles for $106 each. Requirements 1. Prepare New Tech Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method. 2. Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandise inventory on account.

New Tech Cycles started March with 5 bicycles that cost $48 each. On March 16, New Tech purchased 30 bicycles at $55 each. On March 31, New Tech sold 13 bicycles for $106 each. Requirements 1. Prepare New Tech Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method. 2. Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandise inventory on account.

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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Required information [The following information applies to the questions displayed below.] Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15 units for $20 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Date December 7 December 14 Total December 14 Totals December 15 Total December 15 December 21 Goods purchased # of units Cost of Goods Available for Sale 10 at $ 6.00 = $ 60.00 $ 240.00 10 units @ $ 6 cost 20 units @ $12 cost 15 units @ $14 cost Cost per unit 20 at $ 12.00 = 15 at $ 14.00 = $ 210.00 Perpetual LIFO: # of units sold 8 at Cost of Goods Sold Cost per Cost of Goods unit Sold $ 6.00 = $ 48.00 48.00 Inventory Balance # of units 10 at 10 at 20 at 2 at 2 at 2 at 13 at 15 at Cost per unit $ 6.00 = $6.00 =…
Pets Unlimited sells pet supplies to retailers. The company uses a perpetual inventory. Journalize the following transactions for the company: June 1 Sold merchandise for $6,250 with terms 2/10, n/30. Inventory cost was $5,000. 5 Sold merchandise for $10,000 with terms 3/10, n/30. Inventory cost was $6,000. 11 Received a check from the customer paying the balance due within the discount period.
New Tech Cycles started October with 12 bicycles that cost $42 each. On October 16, New Tech purchased 40 bicycles at $68 each. On October 31, New Tech sold 28 bicycles for $99 each. Requirements 1. Prepare New Tech Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. 2. Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account.
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Presented here are selected transactions for the Pharoah Company during April. Pharoah uses the perpetual inventory system. April 1: Sold merchandise to Mann Company for $6,400, terms 2/10, n/30. The merchandise sold had a cost of $2,600. April 2: Purchased merchandise from Wild Corporation for $7,800, terms 1/10, n/30. April 4: Purchased merchandise from Ryan Company for $1,000, n/30. April 10: Received payment from Mann Company for purchase of April 1 less appropriate discount. April 11: Paid Wild Corporation for April 2 purchase. Journalize the April transactions for Pharoah Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
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Sant Summa is a retailer that purchases merchandise inventory from Lee Co. Sant Summa record inventory purchases using the gross method and the perpetual inventory system. Sant Summa started the month of July with $2,000 in inventory. Required: Record the journal entries for the following transactions Calculate Sant Summa's Cost of Goods Available for Sale based on the above information. Calculate Sant Summa's Ending Inventory based on the above information. 2-Jul Purchased $5,200 of merchandise inventory from Lee Co. with credit terms 2/15, n60 and FOB shipping point. (Inventory cost Lee $4,000) 3-Jul Paid $350 for shipping charges for the May 2 purchase. 4-Jul Sant Summa returned $200 of damaged merchandise inventory to Lee Co. (inventory cost to Lee of $170) 13-Jul Paid the appropriate amount for the Lee Co. purchases of July 2, taking all discounts. (Lee…
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