On May 1, Cullumber Company had 410 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month of May for the company is as follows: Purchases Sales May 4 1,300 $4.20 May 3 250 $7.00 14 610 @ $4.40 16 1,200 $7.00 29 500 @ $4.85 18 260 $7.50 (a) Your answer is correct. Calculate the cost of goods sold and ending inventory using FIFO. Cost of goods sold Ending inventory Date Account Titles May 3 May 3 May 4 May 16 May 16 FIFO (To record sales on account.) (To record cost of goods sold.) (To record purchase on account.) (To record sales on account.) (To record cost of goods sold.) 7100 5109 Debit Credit
On May 1, Cullumber Company had 410 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month of May for the company is as follows: Purchases Sales May 4 1,300 $4.20 May 3 250 $7.00 14 610 @ $4.40 16 1,200 $7.00 29 500 @ $4.85 18 260 $7.50 (a) Your answer is correct. Calculate the cost of goods sold and ending inventory using FIFO. Cost of goods sold Ending inventory Date Account Titles May 3 May 3 May 4 May 16 May 16 FIFO (To record sales on account.) (To record cost of goods sold.) (To record purchase on account.) (To record sales on account.) (To record cost of goods sold.) 7100 5109 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On May 1, Cullumber Company had 410 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory
system. All purchases and sales are on account. A record of inventory transactions for the month of May for the company is as follows:
Purchases
Sales
May 4
1,300
@
$4.20
May 3
250
$7.00
14
610
@
$4.40
16
1,200
$7.00
29
500
@
$4.85
18
260
$7.50
(a)
Your answer is correct.
Calculate the cost of goods sold and ending inventory using FIFO.
FIFO
Cost of goods sold
7100
Ending inventory
$
5109
Date
Account Titles
May 3
May 3
May 4
May 16
May 16
(To record sales on account.)
(To record cost of goods sold.)
(To record purchase on account.)
(To record sales on account.)
(To record cost of goods sold.)
Debit
Credit
:d
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