Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of 2019 follow: Units Sold Date October 1 October15 Units Purchased 500 Unit Cost $4.00 $4.10 300 October 30 600 400 November 10 November 25 December 5 December 20 The selling price for all units sold in the quarter was $10.00. REQUIRED: 1. Assume the company uses a periodic inventory system. Calçulate the cost of goods sold for the last quarter of 2019 using the FIFO method of cost valuation 2. Prepare the journal entry to record the sale on October 30th (on accound Assume the company uses a perpetual inventory system and FIFO method of valuation. 3. Prepare the journal entry to record the sale on October 30th (on account). Assume the company uses a periodic inventory system and FIFO method of valuation $4.20 500 800 $3.90 700
Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of 2019 follow: Units Sold Date October 1 October15 Units Purchased 500 Unit Cost $4.00 $4.10 300 October 30 600 400 November 10 November 25 December 5 December 20 The selling price for all units sold in the quarter was $10.00. REQUIRED: 1. Assume the company uses a periodic inventory system. Calçulate the cost of goods sold for the last quarter of 2019 using the FIFO method of cost valuation 2. Prepare the journal entry to record the sale on October 30th (on accound Assume the company uses a perpetual inventory system and FIFO method of valuation. 3. Prepare the journal entry to record the sale on October 30th (on account). Assume the company uses a periodic inventory system and FIFO method of valuation $4.20 500 800 $3.90 700
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 70BPSB
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Question
![Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of 2019
follow:
Date
Units Purchased
Units Sold
Unit Cost
October 1
October15
October 30
500
300
$4.00
$4.10
600
November 10
400
$4.20
November 25
500
December 5
December 20
800
$3.90
700
The selling price for all units sold in the quarter was $10.00.
REQUIRED:
1. Assume the company uses a periodic inventory system. Calçulate the cost of goods sold for the
last quarter of 2019 using the FIFO method of cost valuation.
2. Prepare the journal entry to record the sale on October 30th (on account Assume the company
uses a perpetual inventory system and FIFO method of valuation.
3. Prepare the journal entry to record the sale on October 30th (on account). Assume the company
uses a periodic inventory system and FIFO method of valuation
4. This question does not relate to the data above. Ignore all of the above information.
Required: If ANY company wants to maximize gross margin and, assuming the unit cost of invento
purchases will always increase, which inventory cost valuation method should that company
choose? Include a brief one-sentence explanation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04655fa1-8a14-4287-9748-c095e4183a84%2F87f07cfc-51e5-4db8-a10e-97e16a5683d8%2Fcf55a1j_processed.png&w=3840&q=75)
Transcribed Image Text:Port Corporation sells item X-100. Purchases, sales and costs of item X-100 for the last quarter of 2019
follow:
Date
Units Purchased
Units Sold
Unit Cost
October 1
October15
October 30
500
300
$4.00
$4.10
600
November 10
400
$4.20
November 25
500
December 5
December 20
800
$3.90
700
The selling price for all units sold in the quarter was $10.00.
REQUIRED:
1. Assume the company uses a periodic inventory system. Calçulate the cost of goods sold for the
last quarter of 2019 using the FIFO method of cost valuation.
2. Prepare the journal entry to record the sale on October 30th (on account Assume the company
uses a perpetual inventory system and FIFO method of valuation.
3. Prepare the journal entry to record the sale on October 30th (on account). Assume the company
uses a periodic inventory system and FIFO method of valuation
4. This question does not relate to the data above. Ignore all of the above information.
Required: If ANY company wants to maximize gross margin and, assuming the unit cost of invento
purchases will always increase, which inventory cost valuation method should that company
choose? Include a brief one-sentence explanation.
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