Required information[The following information applies to the questionsdisplayed below.]Trey Monson starts a merchandising business on December1 and enters into the following three inventory purchases.Monson uses a perpetual inventory system. Also, onDecember 15, Monson sells 15 units for $23 each.Purchases on December 7Purchases on December 14Purchases on December 2110 units @ $9.00 cost20 units @ $15.00 cost15 units @ $17.00 costDetermine the costs assigned to ending inventory when costsare assigned based on the LIFO method.Perpetual LIFO:Goods purchasedCost of Goods SoldCost of Goods# ofDateCost perCost per Cost of (Sol# of unitsAvailable forunitsunitunitSalesoldDecember 710 at$9.002$90.00%3D20 at$ 15.00$ 300.00%3DDecember 14Total December 1415 at$ 23.00 =2$December 15Total December 1515 at$ 17.00$ 255.00%3DDecember 21Totals$ : ɔ the questionsy business on December: inventory purchases.system. Also, onfor $23 each.units @ $9.00 costunits @ $15.00 costunits @ $17.00 costiding inventory when costsethod.Perpetual LIFO:sedCost of Goods SoldInventory Balanceost of Goods# ofCost per Cost of GoodsunitCost perunitInventoryBalanceAvailable forunits# of unitsSoldSalesold2$90.00$ 300.00atat2$0.0015 at$ 23.00 =$ 345.00atat$ 255.00$ 345.00

The question is based on the concept of Cost Accounting.

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Accounting

o the questions business on December inventory purchases. system Also on

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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Options are General Sales Purchases Cash receipts Cash Disbursements
Required information [The following information applies to the questions displayed below] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 380 units from the January 30 purchase, 5 units from the January 20 purchase, and 25 units from beginning inventory Date January 1 January 10 January 20 January 25 January 30 View transaction list Activities Beginning inventory Sales Purchase Sales. Purchase Totals Journal entry worksheet 1 < 3 Record journal entries for Laker Company's sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and FIFO, All sales and purchases are made on account, and no discounts are offered. Record the sale of goods. 4 5 Units Acquired at Cost 240 units @ $16.50- 170 units @ $15.50 380 units @ $ 15.00- 790 units 6 $ 3,960 2,635 5,700 $ 12,295 Units sold at Retail 190 units 0 $25.50 e $25.50 190 units 380 units
Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes: Multiple Choice a debit to Purchases and a credit to Accounts Receivable. a debit to Purchases and a credit to Accounts Payable. a debit to Accounts Payable and a credit to Purchases. a credit to Purchases and a credit to Accounts Payable.
Under the perpetual system of inventory, the Inventory account is debited at each purchase and credited at each sale. Why is it recommended that a business still do an inventory count once in a while?
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2. Compute the July 31 balances of the inventory accounts.
Patterson Company has the following items at year-end. Identify which items should be included in Patterson's year-end inventory count. 1. Goods held on consignment by Sell For You Company. 2. Goods held by Patterson on consignment that will be sold for another company. 3. Goods in transit sent to a client F.O.B. shipping point. 4. Goods in transit sent to a client F.O.B. destination. 01 & 4 01, 2, 3, & 4 01, 2, & 4 01 & 3
Describe the journal entries when recording a sale of inventory using the periodic inventory system.
On December 7, Smart Touch delivers equipment to a small retailer on consignment. The cost of the equipment was $1,460 and the combined retail selling price is $2,200. If the retail shop sells the equipment, Smart Touch will pay 20% commission. Both companies use a perpetual inventory method. Date Accounts Debit Credit
Instructions In this assignment you will record eight transactions related to the sale and purchase of merchandise. You will record each transaction according to the procedures of a periodic inventory system. You will record each transaction according to the procedures of a perpetual inventory system. Include the date for each transaction. Include a brief explanation for each entry similar to the sample entry example. Please skip a line between each transaction entry. You may use the journals provided or create your own journals. If you create your own journals they must have a date column, description column, a debit column and a credit column. You may hand write the journal entries or type them. Transactions to Record Sample Ace Company issues a $200 Sales Allowance to a customer who received damaged merchandise purchased in Feb from Ace. Mar 1 Ace Company sells merchandise totaling $1,500 on account with terms 2/15, n/30, FOB destination. Cost of goods is…