Question   Starshine Coffee Equipment sells European style coffee makers and uses a perpetual inventory system. Its inventory records show that on June 1, Starshine had 12 units on hand at a cost of $220 each. Transactions related to purchase and sale of coffee makers in June were as follows:          Per unit  Date  Transaction  Units  Cost  Sales price  June 10  Sale  3    $510  June 15  Sale  4    $510  June 20  Purchase  5  $230    June 22  Purchase  6  $240    June 30  Sale  10    $500    Instructions  For each of the following cost formulas, calculate the ending inventory as at June 30 and the cost of goods sold for the month of June. Prove the cost of goods sold calculations.     (Use Average method)         Purchases  Cost of goods sold  Balance  Date  Units  Cost  Total  Units  Cost  Total  Units  Cost  Total  Jun 1                    Jun 10                    Jun 15                    Jun 20                    Jun 22                    Jun 30

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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Starshine Coffee Equipment sells European style coffee makers and uses a perpetual inventory system. Its inventory records show that on June 1, Starshine had 12 units on hand at a cost of $220 each. Transactions related to purchase and sale of coffee makers in June were as follows: 

 

 

 

 

Per unit 

Date 

Transaction 

Units 

Cost 

Sales price 

June 10 

Sale 

 

$510 

June 15 

Sale 

 

$510 

June 20 

Purchase 

$230 

 

June 22 

Purchase 

$240 

 

June 30 

Sale 

10 

 

$500 

 

Instructions 

For each of the following cost formulas, calculate the ending inventory as at June 30 and the cost of goods sold for the month of June. Prove the cost of goods sold calculations. 

 

 (Use Average method)

 

 

 

 

Purchases 

Cost of goods sold 

Balance 

Date 

Units 

Cost 

Total 

Units 

Cost 

Total 

Units 

Cost 

Total 

Jun 1 

 

 

 

 

 

 

 

 

 

Jun 10 

 

 

 

 

 

 

 

 

 

Jun 15 

 

 

 

 

 

 

 

 

 

Jun 20 

 

 

 

 

 

 

 

 

 

Jun 22 

 

 

 

 

 

 

 

 

 

Jun 30 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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