On December 1, 2022, Sunland Company had the account balances shown below. Debit Credit 7 Cash 17 Accounts Receivable 22 Inventory Equipment Ending Inventory $4,800 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 5 Cost of Goods Sold 5,000 2,400 25,000 $37,200 Ending Inventory Accumulated Depreciation Cost of Goods Sold -Equipment Accounts Payable Owner's Capital Granted the December 5 customer $165 credit for 200 units of inventory returned costing $110. These units were returned to inventory. Purchased 2,000 units of inventory for cash at $0.76 each. Sold 3,000 units of inventory on account for $0.91 per unit. (Sunland sold 3,000 of the $0.70 units.) Compute ending inventory and cost of goods sold under FIFO, assuming Sunland Company uses the periodic inventory system. Purchased 4,400 units of inventory on account at a cost of $0.70 per unit. Sold 4,900 units of inventory on account for $0.86 per unit. (Sunland sold 4,000 of the $0.60 units and 900 of the $0.70.) Senter a dollar amount Senter a dollar amount $1,100 3,000 Senter a dollar amount 33,100 Compute ending inventory and cost of goods sold under LIFO, assuming Sunland Company uses the periodic inventory system. Senter a dollar amount $37,200
On December 1, 2022, Sunland Company had the account balances shown below. Debit Credit 7 Cash 17 Accounts Receivable 22 Inventory Equipment Ending Inventory $4,800 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 5 Cost of Goods Sold 5,000 2,400 25,000 $37,200 Ending Inventory Accumulated Depreciation Cost of Goods Sold -Equipment Accounts Payable Owner's Capital Granted the December 5 customer $165 credit for 200 units of inventory returned costing $110. These units were returned to inventory. Purchased 2,000 units of inventory for cash at $0.76 each. Sold 3,000 units of inventory on account for $0.91 per unit. (Sunland sold 3,000 of the $0.70 units.) Compute ending inventory and cost of goods sold under FIFO, assuming Sunland Company uses the periodic inventory system. Purchased 4,400 units of inventory on account at a cost of $0.70 per unit. Sold 4,900 units of inventory on account for $0.86 per unit. (Sunland sold 4,000 of the $0.60 units and 900 of the $0.70.) Senter a dollar amount Senter a dollar amount $1,100 3,000 Senter a dollar amount 33,100 Compute ending inventory and cost of goods sold under LIFO, assuming Sunland Company uses the periodic inventory system. Senter a dollar amount $37,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 1, 2022, Sunland Company had the account balances shown below.
Debit
Credit
Dec.
3
5
7
Cash
Accounts
Receivable
Inventory
Equipment
17
22
$4,800
Ending Inventory
5,000
*(4,000 x $0.60)
The following transactions occurred during December:
Cost of Goods Sold
2,400
25,000
Ending Inventory
$37,200
Cost of Goods Sold
Accumulated Depreciation
-Equipment
Accounts Payable
Owner's Capital
Purchased 4,400 units of inventory on account at a cost of $0.70 per unit.
Sold 4,900 units of inventory on account for $0.86 per unit. (Sunland sold 4,000 of the $0.60 units and 900
of the $0.70.)
Purchased 2,000 units of inventory for cash at $0.76 each.
Sold 3,000 units of inventory on account for $0.91 per unit. (Sunland sold 3,000 of the $0.70 units.)
Compute ending inventory and cost of goods sold under FIFO, assuming Sunland Company uses the periodic inventory
system.
Granted the December 5 customer $165 credit for 200 units of inventory returned costing $110. These units
were returned to inventory.
Senter a dollar amount
$1,100
Senter a dollar amount
3,000
33,100
Senter a dollar amount
$37,200
Compute ending inventory and cost of goods sold under LIFO, assuming Sunland Company uses the periodic inventory
system.
Senter a dollar amount
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