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it View History Bookmarks Window Help ? v2.cengagenow.com Calculator Print Item Show Me How FIFO perpetual inventory eBook FIFO Journal Final The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 2,600 7,000 3,850 1,300 500 17,500 8,700 8,800 14,000 0,100 3,300 $54.00 $140,400 62.00 434,000 108.00415,800 08.00140,400 108.00 54,000 64.00 1,120,000 113.00 983,100 113.00 971,800 65.60 918,400 113.00 1,141,300 66.00 217,800 7,750113.00 875,750 10 Purchase 28 Sale 30 Sale Feb. 5 Sale 10 Purchase 16 Sale 28 Sale Mar. 5 Purchase 14 Sale 25 Purchase 30 Sale 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record 2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries to the one ilustrated in Exhibit 3, using the first-in, first-out method. in the sales and cost of goods sold accounts. Assume that al sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account taes. 3. Determine the gross profit from sales for the period 4. Determine the ending inventory cost as of March 31 5. Based upon the preceding data, would you expect the ending inventory using the last-in frst.out method to be higher or lower?Explanation / Answer
Solution 1:
Solution 2:
Total cost of goods sold (Refer table in question 1) = $2,593,120
Solution 3:
Gross Profit = Sales - COGS = $4,582,150 - $2,593,120 = $1,989,030
Solution 4:
Ending inventory on March 31 (Refer table in ques 1) = $237,480
Solution 5:
As prices are increasing in nature, therefore ending inventory using LIFO will be lower.
Computation of ending inventory COGS under FIFO Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-Jan 2600 $54.00 $140,400.00 0 $0.00 $0.00 0 $0.00 $0.00 2600 $54.00 $140,400.00 10-Jan 2600 $54.00 $140,400.00 7000 $62.00 $434,000.00 0 $0.00 $0.00 2600 $54.00 $140,400.00 7000 $62.00 $434,000.00 28-Jan 2600 $54.00 $140,400.00 0 $0.00 $0.00 2600 $54.00 $140,400.00 5750 $62.00 $356,500.00 7000 $62.00 $434,000.00 1250 $62.00 $77,500.00 30-Jan 5750 $62.00 $356,500.00 0 $0.00 $0.00 1300 $62.00 $80,600.00 4450 $62.00 $275,900.00 5-Feb 4450 $62.00 $275,900.00 0 $0.00 $0.00 500 $62.00 $31,000.00 3950 $62.00 $244,900.00 10-Feb 3950 $62.00 $244,900.00 17500 $64.00 $1,120,000.00 0 $0.00 $0.00 3950 $62.00 $244,900.00 17500 $64.00 $1,120,000.00 16-Feb 3950 $62.00 $244,900.00 0 $0.00 $0.00 3950 $62.00 $244,900.00 12750 $64.00 $816,000.00 17500 $64.00 $1,120,000.00 4750 $64.00 $304,000.00 28-Feb 12750 $64.00 $816,000.00 0 $0.00 $0.00 8600 $64.00 $550,400.00 4150 $64.00 $265,600.00 5-Mar 4150 $64.00 $265,600.00 14000 $65.60 $918,400.00 0 $0.00 $0.00 4150 $64.00 $265,600.00 14000 $65.60 $918,400.00 14-Mar 4150 $64.00 $265,600.00 0 $0.00 $0.00 4150 $64.00 $265,600.00 8050 $65.60 $528,080.00 14000 $65.60 $918,400.00 5950 $65.60 $390,320.00 25-Mar 8050 $65.60 $528,080.00 3300 $66.00 $217,800.00 0 $0.00 $0.00 8050 $65.60 $528,080.00 3300 $66.00 $217,800.00 30-mar 8050 $65.60 $528,080.00 0 $0.00 $0.00 7750 $65.60 $508,400.00 300 $65.60 $19,680.00 3300 $66.00 $217,800.00 3300 $66.00 $217,800.00 Total $2,593,120.00 3600 $237,480.00Related Questions
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