The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:NumberDateTransactionof UnitsPer UnitTotalApr. 3 Inventory48$525$25,200Purchase9663060,48011Sale641,750112,00030Sale401,75070,000May 8Purchase8070056,00010Sale481,75084,00019Sale241,75042,00028Purchase8077061,600June 5Sale481,84088,32016Sale641,840117,76021Purchase144840120,96028Sale721,840132,480 2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume thatall sales were on account.RecordsaleRecordcost3. Determine the gross profit from sales for the period.4. Determine the ending inventory cost as of June 30.$45. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?

Working note: Compute total value of sales as shown below: Compute cost of ending inventory…

Answered: The beginning inventory of merchandise…

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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Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. May 1 Purchased merchandise with a price of $800 and credit terms of n/30. May 7 Returned merchandise that had a price of $100. May 31 Paid the amount due from the May 1 purchase, minus the May 7 return.
Please help me
wer the following independent questions and show computations supporting your answers. 1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is 2. Assume that the company uses the average cost method. The value of the ending inventory on Decemb $. 3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is
The accounting records of Kingbird Electronics show the following data. Beginning inventory Purchases Sales 3,060 units at $7 7,140 units at $9. 8,590 units at $12 Determine cost of goods sold during the period under a periodic inventory system using (a) the FIFO method, (b) the LIFO method, and (c) the average-cost method. Cost of goods sold FIFO SA $ LIFO $ Average-cost $
You are given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about the two companies’ performances based on these numbers?
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The amount shown in the adjustments credit column for Merchandise Inventory on the worksheet is: A.Cost of Goods Sold. B.total purchases. C.ending inventory. D.beginning inventory.
(a) Determine the cost of goods available for sale. (b) Determine the (i) cost of ending inventory and (ii) cost of goods sold under FIFOand LIFO method of cost flow.
Perpetual inventory using LIFO The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 3,900 units at $41 Apr. 19 Sale 2,600 units June 30 Purchase 4,900 units at $46 Sept. 2 Sale 5,600 units Nov. 15 Purchase 2,000 units at $48 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Round your answers for quantity values to the nearest whole number, for unit cost values to the nearest cent, and for total cost values to the…
From the following, calculate the cost of ending inventory and cost of goods sold for the FIFO method, ending inventory is 54 units. Note: Round your answers to the nearest cent. Beginning inventory and purchases January 1 April 10 May 15 July 22 August 19 September 30 November 10 December 15 Cost of ending inventory Cost of goods sold Units 4 11 11 16 EX 17 21 31 17 Unit cost $ 2.50 3.00 3.50 3.75 4.50 4.70 4.90 5.30
Under a periodic inventory system, closing entries will include Oa. debits to Sales, Purchases Returns and Allowances, and Purchases Discounts Ob. adjustments to Merchandise Inventory to match physical inventory Oc. credits to Purchases and Sales Discounts Od. All of these choices are correct.
Pina Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1, of 490 bookcases at a cost of $132 each. During June, the company had the following purchases and sales of bookcases: Date June (a) 6 10 14 16 26 Purchases Units Unit cost 1,160 $134 1,780 970 135 136 Sales Units Unit price 950 1,660 $201 206

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