Shepherd Cycles started May with 5 bicycles that cost $48 each. On May 16, Shepherd purchased 30 bicycles at $55 each. On May 31, Shepherd sold 21 bicycles for $110 each. Requirements 1. 2. Requirement 1. Prepare Shepherd Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first. Abbreviation used: QTY = Quantity; Tot. = Total) Shepherd Cycles Date May 1 May 16 Prepare Shepherd Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account. May 31 Purchases QTY Unit Cost Tot. Cost 30 $ 55 $ 1,650 Cost of Goods Sold QTY Unit Cost Tot. Cost 5 16 S 48 S $ 240 2070 Inventory on Hand QTY Unit Cost Tot. Cost 48 $ 240 5 $ 5 $ 48 $ 240 30 $ 55 $ 1,650

Shepherd Cycles started May with 5 bicycles that cost $48 each. On May 16, Shepherd purchased 30 bicycles at $55 each. On May 31, Shepherd sold 21 bicycles for $110 each. Requirements 1. 2. Requirement 1. Prepare Shepherd Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first. Abbreviation used: QTY = Quantity; Tot. = Total) Shepherd Cycles Date May 1 May 16 Prepare Shepherd Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account. May 31 Purchases QTY Unit Cost Tot. Cost 30 $ 55 $ 1,650 Cost of Goods Sold QTY Unit Cost Tot. Cost 5 16 S 48 S $ 240 2070 Inventory on Hand QTY Unit Cost Tot. Cost 48 $ 240 5 $ 5 $ 48 $ 240 30 $ 55 $ 1,650

Name: Shepherd Cycles started May with 5 bicycles that cost $48 each. On Ma
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Description: Shepherd Cycles started May with 5 bicycles that cost $48 each. On May 16, Shepherd purchased 30 bicycles at $55 each. On May 31, Shepherd sold 21 bicycles for $110 each.Requirements1.2.DateMay 1May 16Prepare Shepherd Cycle's perpetual inventory rec

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 5EB: On April 20, Barrio Bikes purchased 30 bicycles at a cost of $100 per bike. Credit terms were 4/10,...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Shepherd Cycles started May with 5 bicycles that cost $48 each. On May 16, Shepherd purchased 30 bicycles at $55 each. On May 31, Shepherd sold 21 bicycles for $110 each.
Requirements
1.
2.
Date
May 1
May 16
Prepare Shepherd Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method.
Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account.
Requirement 1. Prepare Shepherd Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method.
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of
inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first. Abbreviation used: QTY = Quantity; Tot. = Total)
Shepherd Cycles
May 31
Purchases
QTY Unit Cost Tot. Cost
30 $ 55 $
1,650
Cost of Goods Sold
QTY Unit Cost Tot. Cost
5 $
16
48 $
240
2070
Inventory on Hand
QTY Unit Cost Tot. Cost
5 $
48 $
48 $
55 $
5 $
30 $
C
240
240
1,650

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On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each bike cost Barrio Bikes $100. The customer had yet to pay on their account. The bikes are in sellable condition. Prepare the journal entry or entries to recognize this return if the company uses A. the perpetual inventory system B. the periodic inventory system
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