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. Using the FIFO method, what is the ending inventory balance on November 1, 2017? Purchased 100 pairs of sneakers on account at a cost of $5,945 perpair. In addition, Jerome paid $405 in cash on each pair of shoes tohave the inventory shipped from the vendor's warehouse to Jerome'sOctober 10showroom.October 30During 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$406,500November 1November 145 pairs of the sneakers purchased on November 1 were found to be ofthe wrong description and returned to the supplierNovember 30The sales for November were 60 pairs of sneakers which yielded totalsales revenue of $430,000.Odail Thomas, a customer to whom 10 pairs were sold at the close ofbusiness on November 30, returned 4 pairs of the sneakers, as theywere of the wrong colour.December 2

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Description: 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

FIFO Method - Under FIFO Method of Inventory valuation company used to sell inventory purchased 1st.…

Answered: October 10 Purchased 100 pairs of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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.

Using the FIFO method, what is the ending inventory balance on November 1, 2017?

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
October 10
showroom.
October 30
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 1
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

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