See Through Incorporated retails hand blown glass vases and uses a perpetual inventory system. A statement of their purchases and sales of these vases for the month of June 2019 is given below. June 1 Opening stock of 30 vases valued at a total cost of$27,000. June 3 Purchased 45 vases at a cost of $980 each. June 5 Sold 55 vases at $1,600 each. June 6 Purchased 70 vases at $1,200 each but a trade discount of 3% was received. June 10 Sold 60 vases for $114,000. June 14 Purchased 80 vases at $1,100 each but additionally there was a shipping cost of $200 per vase. June 18 Sold 65 vases for $2,300 each. June 23 Purchased 75 vases at a total cost of $108,750. June 25 5 of the vases last sold were returned, as the customer purchased an incorrect quantity. June 27 Sold 112 vases for $280,000. June 30 An actual count of vases was carried out which revealed that there were only 9 hand blown glass vases in the store room Prepare the inventory record for See Through Inc. using the LIFO method. Determine the gross profit earned by See Through Inc. for the period. State the journal entries necessary to record the transactions on June 6 & 18 under the a) perpetual inventory system b} periodic inventory system
See Through Incorporated retails hand blown glass vases and uses a perpetual inventory system. A statement of their purchases and sales of these vases for the month of June 2019 is given below.
June 1 Opening stock of 30 vases valued at a total cost of$27,000.
June 3 Purchased 45 vases at a cost of $980 each.
June 5 Sold 55 vases at $1,600 each.
June 6 Purchased 70 vases at $1,200 each but a trade discount of 3% was received.
June 10 Sold 60 vases for $114,000.
June 14 Purchased 80 vases at $1,100 each but additionally there was a shipping cost of $200 per vase.
June 18 Sold 65 vases for $2,300 each.
June 23 Purchased 75 vases at a total cost of $108,750.
June 25 5 of the vases last sold were returned, as the customer purchased an incorrect quantity.
June 27 Sold 112 vases for $280,000.
June 30 An actual count of vases was carried out which revealed that there were only 9 hand blown glass vases in the store room
Prepare the inventory record for See Through Inc. using the LIFO method.
Determine the gross profit earned by See Through Inc. for the period.
State the
a) perpetual inventory system
b} periodic inventory system
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