Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera bulbs. The business began the second quarter (April to June) of 2020 with 15 (V380PRO) camera bulbs at a total cost of $108,750. The following transactions relating to the "V380PRO" camera bulbs were completed during the quarter. April 7 90 bulbs were purchased at a cost of $6,850 each. In addition, the business paid freight charges of $800 cash on each bulb to have the inventory shipped from the point of purchase to their warehouse. April 30 The sales for April were 75 bulbs which yielded total sales revenue of $803,250. (15 of these bulbs were sold on account to longstanding customers of the business) Мaу 6 A new batch of 80o bulbs was purchased at a total cost of $654,800 Мay 9 Upon inspection of the bulbs purchased on May 6, five (5) of the units were found to be |defective and were returned to the supplier. |May 31 During the month 62 of the camera bulbs were sold at a price of $11,450 each.
Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera bulbs. The business began the second quarter (April to June) of 2020 with 15 (V380PRO) camera bulbs at a total cost of $108,750. The following transactions relating to the "V380PRO" camera bulbs were completed during the quarter. April 7 90 bulbs were purchased at a cost of $6,850 each. In addition, the business paid freight charges of $800 cash on each bulb to have the inventory shipped from the point of purchase to their warehouse. April 30 The sales for April were 75 bulbs which yielded total sales revenue of $803,250. (15 of these bulbs were sold on account to longstanding customers of the business) Мaу 6 A new batch of 80o bulbs was purchased at a total cost of $654,800 Мay 9 Upon inspection of the bulbs purchased on May 6, five (5) of the units were found to be |defective and were returned to the supplier. |May 31 During the month 62 of the camera bulbs were sold at a price of $11,450 each.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
(A) Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO)
method of
the value of ending.
(B) Given that selling, distribution and administrative costs associated with the V380PRO brand of
WIFI SMART camera bulbs for the quarter were $27,255, $42,400 and $145,600 respectively,
prepare an income statement for Sim-Jo-La (V380PRO) for the quarter ended June 30, 2020.
(C) Journalize the transactions for the month of April, assuming the company uses a:
- Periodic inventory system
- Perpetual inventory system
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Introduction:
VIEWRequirement 1: Preparing a perpetual inventory record
VIEWRequirement 1: Computation Explanation:
VIEWRequirement 2: Income Statement:
VIEWRequirement 3 (a): Journal Entry as per periodic inventory system for the month of April:
VIEWRequirement 3(b): Journal Entry as per perpetual inventory system for the month of April:
VIEWStep by step
Solved in 6 steps with 8 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education