Wonka Candy Ltd. is a retail company that sells chocolate bars. The company usesthe perpetual inventory system and follows the FIFO method for inventoryvaluation. The following information is available for November 2023.DateActivityUnitsCost/Sellingprice per unitOpeningNovember 1inventory300$2.50Nov 5Purchases500$2.25Nov 10Sales400$5Nov 15Purchases200$2Nov 22Sales300$4.50Required:Calculate the Cost of goods sold and Ending Inventory for the month of Novemberusing the FIFO method.Record the journal entry for the Nov. 10 sale if the sale was made on account.

Periodic inventory system means where day to day in or out of goods is not recorded and value of…

Wonka Candy Ltd. is a retail company that sells chocolate bars. The company uses the perpetual inventory system and follows the FIFO method for inventory valuation. The following information is available for November 2023. Date Activity Opening Units Cost/Selling price per unit November 1 inventory 300 $2.50 Nov 5 Purchases 500 $2.25 Nov 10 Sales 400 $5 Nov 15 Purchases 200 $2 Nov 22 Sales 300 $4.50 Required: Calculate the Cost of goods sold and Ending Inventory for the month of November using the FIFO method. Record the journal entry for the Nov. 10 sale if the sale was made on account.

Wonka Candy Ltd. is a retail company that sells chocolate bars. The company uses the perpetual inventory system and follows the FIFO method for inventory valuation. The following information is available for November 2023. Date Activity Opening Units Cost/Selling price per unit November 1 inventory 300 $2.50 Nov 5 Purchases 500 $2.25 Nov 10 Sales 400 $5 Nov 15 Purchases 200 $2 Nov 22 Sales 300 $4.50 Required: Calculate the Cost of goods sold and Ending Inventory for the month of November using the FIFO method. Record the journal entry for the Nov. 10 sale if the sale was made on account.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...

See similar textbooks

Similar questions

On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?
You have the following information for Cullumber Inc. for the month ended October 31, 2025. Cullumber uses a periodic system for inventory. Date Oct. 1 Oct. 9 Oct. 11. Oct. 17 Oct. 22 Oct. 25 Oct. 29 Description Beginning inventory Purchase Sale Purchase Sale Purchase Sale Units Unit Cost or Selling Price $26 28 65 130 100 100 65 75 110 45 29 50 31 50
A company that uses the perpetual inventory system purchases inventory for P65,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made within 10 days? O a debit to Merchandise Inventory for P1,300, a debit to Accounts Payable for P65,000 and a credit to Cash for P66,300 O a debit to Accounts payable for P65,000, a credit to Merchandise Inventory for P1.300, and a credit to Cash for P63,700 O a debit to Accounts Payable for P63,700, a debit to Merchandise Inventory for P1,300 and a credit to Cash for P65,000 a debit to Accounts payable for P65.000 and a credit to Cash for P65,000 and a debit to Merchandise Inventory for P1.300
A perpetual inventory system is used by EhsaanTraders and an inventory record card is maintained for each type of product in stock. The following transaction show beginning inventory, purchases, and sales of product JC209 for the month of May 2020 : May 01 : Balance on hand, 20 units, cost Rs. 40 each. May 05 : Sales, 8 units, sales price Rs. 60 each. May 06 : Purchases, 20 units, cost Rs. 45 each. May 11 : Purchases, 15 units, cost Rs. 50 each. May 21 : Sales, 10 units, sales price Rs. 60 each. May 31 : Sales, 15 units, sales price Rs. 65 each. May 31 : Purchases, 10 units, cost Rs. 55 each. Required : Calculate the cost of ending inventory under FIFO and Weighted Average Cost Method. Calculate the amount of cost of goods sold under FIFO and total sales during the month. Instead of perpetual, if Ehsaan Traders follows periodic inventory system, do you think if it will be beneficial in all business…
Monomaniacs Inc. makes use of a perpetual inventory system for the goods it sells. During January 2021, the following transactions took place: Date January 2 January 5 January 9 January 18 January 24 January 30 Type of Transaction Beginning Inventory Purchase Sale Purchase Sale Purchase Number of Units 60 52 55 50 56 57 Amount Per Unit $55.00 $56.00 $105.00 $57.00 $105.00 $58.00 Required: Use the information above to produce a 9-column perpetual inventory. schedule of merchandise activity in January, 2022. When complete, circle or highlight the ending inventory, as well as the cost of goods sold for each of the two tables you will complete, based on the following perpetual methods: a) LIFO b) Moving Average
The following information is available for Beach Company for 2025 who uses a periodic inventory system: Account Inventory (beginning) Purchases Freight-in Purchase Discounts Purchase Returns Account Sales Revenue Sales Returns Debit 102,000 1,024,000 10,200 Credit 4,700 12,300 2,142,000 20,100 a. If the physical count of ending inventory at Beach is $142,000, what is the cost of goods sold? b. Prepare the journal entry for the end-of-period inventory. (All previous entries were properly prepared.) Debit Credit
Africa Traders is a registered VAT vendor that buys and sells furniture. The business makes use of the periodic inventory system. Use the following information from the accounting records of Africa Traders to calculate the cost of sales on 28 February 2021: R Inventory (1 March 2020) 205 000 Sales 2 864 800 Purchases 1 564 000 Carriage on purchases 24 600 A physical inventory count on 28 February 2021 indicated that the inventory on hand amounted to R460 000. NB: Instructions 1. Do not type the amount with any spaces as separators for thousands (eg: 12141.72) 2. Use a full stop to indicate any decimals (eg: 1000.01) 3. You must enter cents even if it is 0 (eg .00) 4. Only show the amount, do not show the R (eg: 12141.72) Answer:
Fabrika Enterprise (FE) is a retail business which sells fabric. FE uses a perpetual inventory system. FE has a financial year ending on 31 May. As at 28 February 2019, the ledger of FE shows the following accounts with normal balances: RM RM Cash 15,870 Sales 115,166 Accounts Receivable 16,970 Sales Returns and Allowances 1,030 Merchandise Inventory 22,300 Cost of Goods Sold 66,220 Supplies 310 Freight-out 1,096 Furnitures 35,550 Sales Discount 450 Accumulated Depreciation – Furniture 7,940 Salaries Expense 11,950 Accounts Payable 3,600 Advertising Expense 2,000 Notes Payable 10,000 Utilities Expense 3,000 Capital 41,860 Miscellaneous Expense 1,300 Withdrawal 520 During Mac 2019, the following transactions occurred: March 1 Paid RM3,000 for 3 month promotion cost (March, April, May 2019). 2 Purchased merchandise on account from Pembekal Jakelia for RM7,200,…
Ashvin
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below. Units Unit price $ June Inventory 6,100 2.20 Purchases 4,600 2.25 Sales 4,100 12 Purchases 4,100 2.40 21 Sales 6,000 26 Purchases 3,100 2.50 Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST. Required: a) Using the FIFO method, prepare an appropriate inventory record for Product EFS089 for June. b) Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June. 14