Saabo, Inc. is a distributor of linseed oil which is used in the manufacture of paint. The company buys linseed oil in bulk from a number of different linseed crushing plants. At the beginning of month of September the company had 25,000 gallons of linseed oil stored in its tank farm. The linseed oil was purchased from one crushing plant at a cost of $3.00. During the month of September the company purchased additional linseed oil and sold linseed oil as follows. 9/3/XX purchased 10,000 gallons of linseed oil at $3.25 per gallon. 9/8/XX purchased 15,000 gallons of linseed oil at $3.50 per gallon 9/10/XX purchased 5,000 gallons of linseed oil at $3.60 per gallon. 9/11/XX sold 22,000 gallons to a paint manufacture for $5.00 per gallon. 9/12/XX purchased 20,000 gallons of linseed oil at $3.75 per gallon. 9/22/XX purchased 5,000 gallons of linseed oil at $3.80 per gallon. 9/30/XX sold 28,000 gallons of linseed oil for $5.20. Required: DATE a. Complete the perpetual inventory record (provided) for the above transactions using FIFO b. Make the required journal entry on 9/8/XX for the FIFO method. c. Make the required journal entry on 9/11/XX for the FIFO method. d. Complete the perpetual inventory record (provided) for the above transactions using LIFO ACCOUNT DR CR
Saabo, Inc. is a distributor of linseed oil which is used in the manufacture of paint. The company buys linseed oil in bulk from a number of different linseed crushing plants. At the beginning of month of September the company had 25,000 gallons of linseed oil stored in its tank farm. The linseed oil was purchased from one crushing plant at a cost of $3.00. During the month of September the company purchased additional linseed oil and sold linseed oil as follows. 9/3/XX purchased 10,000 gallons of linseed oil at $3.25 per gallon. 9/8/XX purchased 15,000 gallons of linseed oil at $3.50 per gallon 9/10/XX purchased 5,000 gallons of linseed oil at $3.60 per gallon. 9/11/XX sold 22,000 gallons to a paint manufacture for $5.00 per gallon. 9/12/XX purchased 20,000 gallons of linseed oil at $3.75 per gallon. 9/22/XX purchased 5,000 gallons of linseed oil at $3.80 per gallon. 9/30/XX sold 28,000 gallons of linseed oil for $5.20. Required: DATE a. Complete the perpetual inventory record (provided) for the above transactions using FIFO b. Make the required journal entry on 9/8/XX for the FIFO method. c. Make the required journal entry on 9/11/XX for the FIFO method. d. Complete the perpetual inventory record (provided) for the above transactions using LIFO ACCOUNT DR CR
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
can you do these thank you so much and LIFO method for last one
LIFO METHOD
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Transcribed Image Text:Saabco Inc. is a distributor of linseed oil which is used in the manufacture of paint. The company
buys linseed oil in bulk from a number of different linseed crushing plants. At the beginning of
month of September the company had 25,000 gallons of linseed oil stored in its tank farm. The
linseed oil was purchased from one crushing plant at a cost of $3.00. During the month of
September the company purchased additional linseed oil and sold linseed oil as follows.
9/3/XX purchased 10,000 gallons of linseed oil at $3.25 per gallon.
9/8/XX purchased 15,000 gallons of linseed oil at $3.50 per gallon
9/10/XX purchased 5,000 gallons of linseed oil at $3.60 per gallon.
9/11/XX sold 22,000 gallons to a paint manufacture for $5.00 per gallon.
9/12/XX purchased 20,000 gallons of linseed oil at $3.75 per gallon.
9/22/XX purchased 5,000 gallons of linseed oil at $3.80 per gallon.
9/30/XX sold 28,000 gallons of linseed oil for $5.20.
Required:
DATE
a. Complete the perpetual inventory record (provided) for the above transactions
using FIFO
b. Make the required journal entry on 9/8/XX for the FIFO method.
c. Make the required journal entry on 9/11/XX for the FIFO method.
d. Complete the perpetual inventory record (provided) for the above transactions
using LIFO
ACCOUNT
DR
CR
Transcribed Image Text:FIFO METHOD
PURCHASED
UTS COST
SOLD
BALANCE
TOT UTS COST TOT UTS COST TOT
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