Question 2Bradbury Ptd Ltd uses a first in, first out (FIFO) inventory system to account for its purchases ofspecialty pens. On 1 June, Bradbury had 300 pens on hand at a cost of $10 per pen. Purchases andsales were:DateDetailJune 1Purchased 200 pens at $12 eachSold 350 pens at $20 eachJune 9June 10Purchased 400 pens at $9 eachJune 14Sold 200 pens at $17 eachJune 20Sold 150 pens at $22 eachGJune 28Purchased 250 pens for $15 eachA stocktake at 30 June revealed 448 pens on hand.Required:a) Record the transactions in the general journal using the periodic inventory system.ANSWER a):

A method of inventory valuation for financial reporting purposes that involves performing a physical…

Question 2 Bradbury Ptd Ltd uses a first in, first out (FIFO) inventory system to account for its purchases of specialty pens. On 1 June, Bradbury had 300 pens on hand at a cost of $10 per pen. Purchases and sales were: Date Detail June 1 June 9 Purchased 200 pens at $12 each Sold 350 pens at $20 each Purchased 400 pens at $9 each June 10 June 14 Sold 200 pens at $17 each June 20 Sold 150 pens at $22 each G June 28 Purchased 250 pens for $15 each A stocktake at 30 June revealed 448 pens on hand. Required: a) Record the transactions in the general journal using the periodic inventory system.

Question 2 Bradbury Ptd Ltd uses a first in, first out (FIFO) inventory system to account for its purchases of specialty pens. On 1 June, Bradbury had 300 pens on hand at a cost of $10 per pen. Purchases and sales were: Date Detail June 1 June 9 Purchased 200 pens at $12 each Sold 350 pens at $20 each Purchased 400 pens at $9 each June 10 June 14 Sold 200 pens at $17 each June 20 Sold 150 pens at $22 each G June 28 Purchased 250 pens for $15 each A stocktake at 30 June revealed 448 pens on hand. Required: a) Record the transactions in the general journal using the periodic inventory system.

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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7.4 Can I please get help with this question. Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail March 1 Beginning inventory 90 units @ $50.80 per unit March 5 Purchase 220 units @ $55.80 per unit March 9 Sales 250 units @ $85.80 per unit March 18 Purchase 80 units @ $60.80 per unit March 25 Purchase 140 units @ $62.80 per unit March 29 Sales 120 units @ $95.80 per unit Totals 530 units 370 units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold include 60 units from beginning inventory, 190 units from the March 5 purchase, 40 units from the March 18 purchase, and 80 units from the March 25 purchase.
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Question 7 ZZ Company employs a periodic inventory system and sells its inventory to customers for $39 per unit. ZZ Company had the following inventory information available for June: June 1 Beginning inventory 1,100 units @ $22.10 cost per unit June 6 Purchased 3,400 units @ $16.40 cost per unit June 11 Sold 3,000 units June 15 June 19 June 23 Purchased 1,300 units @ $33.60 cost per unit Sold 1,200 units Purchase 3,700 units @ $20.70 cost per unit Sold 3,600 units June 26 June 28 Purchased 2,500 units @ $28.20 cost per unit During June, ZZ Company reported operating expenses of $18,000 and had an income tax rate of 36%. Calculate the amount of net income shown on ZZ Company's income statement for June using the FIFO method.