Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows: Purchased Sold Balance in inventory Date Units Unit cost Total $ Units Unit cost Total $ Units Unit cost Total $ Jan. 1 200 $2 3 400 $3 8 400 $5 10 700 * 15 300 $7 20 300 ** 27 400 $7 Units were sold for the following amount: June 10 10 $11 June 27 20 $12 *for specific identification, units sold on June 10 came from: Opening inventory 0 Jan. 3 purchase 380 Jan. 8 purchase 320 700 **for specific identification, units sold on June 20 came from: Opening inventory 0 Jan. 3 purchase 0 Jan. 8 purchase 60 Jan. 15 purchase 240 300 Required: 1 Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: a. FIFO Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary.
Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows: Purchased Sold Balance in inventory Date Units Unit cost Total $ Units Unit cost Total $ Units Unit cost Total $ Jan. 1 200 $2 3 400 $3 8 400 $5 10 700 * 15 300 $7 20 300 ** 27 400 $7 Units were sold for the following amount: June 10 10 $11 June 27 20 $12 *for specific identification, units sold on June 10 came from: Opening inventory 0 Jan. 3 purchase 380 Jan. 8 purchase 320 700 **for specific identification, units sold on June 20 came from: Opening inventory 0 Jan. 3 purchase 0 Jan. 8 purchase 60 Jan. 15 purchase 240 300 Required: 1 Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: a. FIFO Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows: | ||||||||||
Purchased | Sold | Balance in inventory | ||||||||
Date | Units | Unit cost | Total $ | Units | Unit cost | Total $ | Units | Unit cost | Total $ | |
Jan. 1 | 200 | $2 | ||||||||
3 | 400 | $3 | ||||||||
8 | 400 | $5 | ||||||||
10 | 700 | * | ||||||||
15 | 300 | $7 | ||||||||
20 | 300 | ** | ||||||||
27 | 400 | $7 | ||||||||
Units were sold for the following amount: | ||||||||||
June 10 | 10 | $11 | ||||||||
June 27 | 20 | $12 | ||||||||
*for specific identification, units sold on June 10 came from: | ||||||||||
Opening inventory | 0 | |||||||||
Jan. 3 purchase | 380 | |||||||||
Jan. 8 purchase | 320 | |||||||||
700 | ||||||||||
**for specific identification, units sold on June 20 came from: | ||||||||||
Opening inventory | 0 | |||||||||
Jan. 3 purchase | 0 | |||||||||
Jan. 8 purchase | 60 | |||||||||
Jan. 15 purchase | 240 | |||||||||
300 | ||||||||||
Required: | ||||||||||
1 | Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: | |||||||||
a. FIFO |
Prepare the |
Goods Purchased | Cost of Goods Sold | Balance in Inventory | ||||||||
Date | Units | Unit Cost | Total $ | Units | Unit Cost | Total $ | Units | Unit Cost | Total $ | |
Jan. 1 | 200 | $2 | ||||||||
3 | 400 | $3 | ||||||||
8 | 400 | $5 | ||||||||
10 | ||||||||||
15 | 300 | $7 | ||||||||
20 | ||||||||||
27 | 400 | $7 | ||||||||
Total COGS |
|
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