USE THIS INFORMATION FOR THE NEXT THREE PROBLEMS PLEASE: The Boxwood Company sel
ID: 2375816 • Letter: U
Question
USE THIS INFORMATION FOR THE NEXT THREE PROBLEMS PLEASE:
The Boxwood Company sells blankets for $60 each. They have no beginning inventory. The following was taken from the inventory records during May:
Date Product Z Units Cost per Unit
May 3 Purchase 5 $30
May 10 Sale 3
May 17 Purchase 10 $34
May 20 Sale 6
May 23 Sale 3
May 30 Purchase 10 $40
9. Assuming the company uses a Perpetual Inventory system, what is the Cost of Goods Sold for the sale of MAY 20 using the LIFO inventory cost method?
A. $196
B. $204
C. $240
D. $124
10. Assuming instead that the company uses the FIFO inventory cost method, again using a perpetual inventory system, what is the amount of its Ending Inventory at the end of May?
A. $264
B. $502
C. $400
D. $790
11. Now assume that Boxwood uses a PERIODIC inventory system based on the Average Cost assumption. Their ending inventory at May 30 would be priced at what value, assuming the purchases and sales above are all accurate and there are no shortages or missing items?
A. $462.80
B. $450.66
C. $520.50
D. $390.75
Please assume these facts for the following two questions, assuming that the Seller uses a perpetual inventory system:
13. In order to record the initial sale, the Seller must make:
14. The Buyer pays the Seller within the 15-day discount period, allowing for the returned merchandise. The amount of the payment that the seller receives is (show your math!):
15. If your revenue accounts show $250,000 in total, and your expense accounts show $180,000 in total, then in the order in which we learned them in chapter 4, the THIRD of your closing entries would be to:
Explanation / Answer
Use the following information to answer the following questions
The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May.
Date Product Z Units Cost
May 3 Purchase 5 $30
May 10 Sale 3
May 17 Purchase 10 $34
May 20 Sale 6
May 23 Sale 3
May 30 Purchase 10 $40
Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
b. $78
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