J &G sells a variety of school supplies from a store located at Red Mountain Mall. Thebusiness began the second quarter (April to June) of 2009 with 2,000 pencil cases ata total cost of $200,000. The following transactions took place during the quarter.Purchased 3,000 pencil cases on account at a cost of $110 each. Anadditional air freight charge of $2, as well as customs import charge of $3per case was incurred and paid. It is customary for J & G to include freightin as part of the cost of the units in their inventory record.During the month 1, 000 pencil cases were sold at a price of $160 each.April 10April 30May 1A new batch of 3,200 cases was purchased on account at a cost of $352,000.May 1515 of the pencil cases purchased on April 10 were found to be defective andreturned to the supplier.May 28May 31The sales for May were 2,350 pencil cases at a unit selling price of $120.10 of the pencil cases sold at the start of business on May 28 were returnedby the customer.Using the FIFO method, the values of purchases and COGS after accounting for thetransaction on May 1, 2009 are:O a. $697,000 and $100,000O b. $691,000 and $113,000O c. $897,000 and $112,000O d. $688,000 and $112,000

COGS using the FIFO method can be determined by the oldest inventory units sold.

Using the FIFO method, the values of purchases and COGS after accounting for the transaction on May 1, 2009 are: O a. $697,000 and $100,000 O b. $691,000 and $113,000 O c. $897,000 and $112,000 O d. $688,000 and $112,000

Using the FIFO method, the values of purchases and COGS after accounting for the transaction on May 1, 2009 are: O a. $697,000 and $100,000 O b. $691,000 and $113,000 O c. $897,000 and $112,000 O d. $688,000 and $112,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sunland's Market recorded the following events involving a recent purchase of inventory: Received goods for $121000, terms 2/15, n/30. Returned $2900 of the shipment for credit. Paid $700 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $116438. increased by $115738. increased by $118800. increased by $116424.
Given the following information, how much is the Inventory, beginning? Inventory end. P162,000 Net purchases, P216,000 Cost of goods sold, P144,000.
How much should be recorded by Potatong Nacorner as Purchases? And how much should be recorded by Kawang-gawa as Sales?
Andy Company records its purchases at gross but wishes to change to recording purchases at net. Discounts available on purchases recorded from October 1, 2020 to September 30, 2021 totaled P400,000. Of this amount P50,000 is still available in the accounts payable balance. The balances in the accounts before conversion are: Purchases 8,000,000 Purchase discounts taken 100,000 Accounts payable 3,000,000 The adjusted accounts payable on September 30, 2021 should be? A. 2,950,000 B.3,000,000 C. 2,900,000 D. 2,600,000
Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the invoice within the discount period. What is the sales amount to be recorded in the above transactions?
AG Inc, made a €10,000 sale on account with the following terms: 1/15, n/30If the company uses the net method to record sales made on credit, how much should be recorded as sales revenue?
Metlock's Market recorded the following events involving a recent purchase of inventory: Received goods for $78200, terms 2/9, n/30. Returned $1700 of the shipment for credit. Paid $700 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $74970. increased by $75670. increased by $77200. O increased by $75656. O O
For the current period, the following data were taken from the ledger: Purchases Purchases Returns and Allowances Purchases Discounts Freight-in Select one: a. $9,600 b. $39,300 40,000 c. $47,300 d. $34,600 e. None of the above 600 Beginning inventory was $8,000 and ending inventory was $13,000. What was cost of goods sold? 300 200
Haresh
An item was shipped from a supplier under FOB shipping point. The invoice in the amount of $2,000 included payment terms of 2/10, n/30. When the invoice was paid, a purchase discount in the amount of $40 was taken. Other details relating to the purchase of this item included the following: shipping charges of $300, storage fees of $50, and insurance premium of $100. The cost of this inventory item is $1,960 $2,410 $2,401 $2,404
From the following information, calculate the value of purchases: Opening trade payables 142,600 Cash paid 542,300 Discounts received 13,200 Goods returned 27,500 Closing trade payables 137,800 %24 %24
Question 4: Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,0003; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000. Instructions: Determine the a) cost of goods sold and b)Gross profit ( show computations)