Chapter 6A, Problem 4E

(Journal inventory transactions in the periodic system; compute cost of goods sold) Use the data in E6A-3

Requirements

Journalize the following for the periodic system:

  1.    Total October purchases in one summary entry. All purchases were on credit.

  2.    Total October sales in a summary entry. Assume that the selling price was $275 per unit and that all sales were on credit.

  3.    October 31 entries for inventory. Synthetix uses LIFO. Post to the Cost of Goods Sold T-account to show how this amount is determined. Label each item in the account.

  4.    Show the computation of cost of goods sold by the cost-of-goods-sold model.