With this information, how many units and at what cost are in inventory to start February? How many units and at what cost are in inventory to start Februry Balance Sheet for end of 2019 Assets Cash 77,250 Accounts Receivable (net of allowance of 7200) 237,884 Inventory 45,500 (1000 units at $45.50 each) Prepaid Insurance 1,600 Supplies 1,625 Total Current Assets 363,859 Property, Plant and Equipment, Net 177,500 Land 32,000 Total Assets 573,359 Liabilities Accounts Payable 94,552 Unearned Revenue 45,200 Interest Payable 2,100 Salaries Payable 6,600 Total Current Liabilities 148,452 Long Term Debt 246,100 Total Liabilities 394,552 Capital Stock 100,000 Retained Earnings 78,807 Total Liabilities and Stockholders Equity 573,359 Transactions for January of 2020 1/3/1900 Paid interest payable plus $3,000 toward long term debt 1/2/2020 Paid salaries payable 1/3/2020 Purchased inventory (500 units at $46) on credit 1/4/2020 Paid shipping on inventory of $250 1/6/2020 Purchased supplies on credit for $850 1/9/2020 Received $2,500 from customers for products to deliver in March 1/10/2020 Sold 600 units on credit with a sales price of $105 (assume perpetual LIFO) 1/15/2020 Purchased inventory (700 units at $47) 1/20/2020 Paid $41,600 on accounts payable 1/21/2020 Collected $121,350 in cash from customers in payment for earlier sales 1/22/2020 Wrote off accounts receivable for $815 1/25/2020 Sold 200 units on credit with a sales price of $105 (still perpetual LIFO) 1/26/2020 Paid wages to employees for work done in January $31,000 1/26/2020 Received utility bill for $7,200 for utilities used in January that will be paid in February 1/31/2020 Delivered 100 units of product to customers that they paid 10,000 for in 2019 (unearned revenue) 1/31/2020 Counted supplies and found $1,240 remaining 1/31/2020 Employees worked and earned $4,700 in January that will not be paid until February 1/31/2020 Interest at 12% per year on the long term debt (new balance) has not been paid 1/31/2020 The prepaid insurance will last 4 months into 2020 before a new policy will be required 1/31/2020 The allowance for bad debts is estimated at 4% of total accounts receivable 1/31/2020 A count of inventory showed that 50 units were damaged such that they are worthless and will be thrown away
With this information, how many units and at what cost are in inventory to start February?
| How many units and at what cost are in inventory to start Februry |
Assets
Cash 77,250
Inventory 45,500 (1000 units at $45.50 each)
Prepaid Insurance 1,600
Supplies 1,625
Total Current Assets 363,859
Property, Plant and Equipment, Net 177,500
Land 32,000
Total Assets 573,359
Liabilities
Accounts Payable 94,552
Unearned Revenue 45,200
Interest Payable 2,100
Salaries Payable 6,600
Total Current Liabilities 148,452
Long Term Debt 246,100
Total Liabilities 394,552
Capital Stock 100,000
Total Liabilities and
Transactions for January of 2020
1/3/1900 Paid interest payable plus $3,000 toward long term debt
1/2/2020 Paid salaries payable
1/3/2020 Purchased inventory (500 units at $46) on credit
1/4/2020 Paid shipping on inventory of $250
1/6/2020 Purchased supplies on credit for $850
1/9/2020 Received $2,500 from customers for products to deliver in March
1/10/2020 Sold 600 units on credit with a sales price of $105 (assume perpetual LIFO)
1/15/2020 Purchased inventory (700 units at $47)
1/20/2020 Paid $41,600 on accounts payable
1/21/2020 Collected $121,350 in cash from customers in payment for earlier sales
1/22/2020 Wrote off accounts receivable for $815
1/25/2020 Sold 200 units on credit with a sales price of $105 (still perpetual LIFO)
1/26/2020 Paid wages to employees for work done in January $31,000
1/26/2020 Received utility bill for $7,200 for utilities used in January that will be paid in February
1/31/2020 Delivered 100 units of product to customers that they paid 10,000 for in 2019 (unearned revenue)
1/31/2020 Counted supplies and found $1,240 remaining
1/31/2020 Employees worked and earned $4,700 in January that will not be paid until February
1/31/2020 Interest at 12% per year on the long term debt (new balance) has not been paid
1/31/2020 The prepaid insurance will last 4 months into 2020 before a new policy will be required
1/31/2020 The allowance for
1/31/2020 A count of inventory showed that 50 units were damaged such that they are worthless and will be thrown away
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