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& Secure https//www.mathul econy/Student/Pyeomeworkapallomework 4672 506gestiondd-1afudhed-add-4674Lacerterenyes Acct 2001 (Sect 03/04), Spring 2018 Alex Grubishi | Vita Homework: Ch 6 Wed homework Score: 0 of 6 pts HW Score: 0.45%, E6-18A (similar to) Dunders, Incs inventory records for a particular development program show the coming at January 31 E click the icon to view the accounting records) A January 31, 11 of these programs are on hand Requirements Journalize the total January purchases in one summary entry, under the perpetual system Ai purchases were on credit 2. Journalize the total January sales and cost of goods sold in two summary entries, under the perpetual system. The selling price was $530 petunt, and all sales were on Credit Assume that Dundas, Inc., uses the FIFO inventory method 3. Under FIFO, how much gross profit would Dundas, Inc, can on these transactions? What is the FIFO cost of Dundas Incending inventory? Requirement 1. Journalize for Dundas, Inc total January purchases in one summary only under the perpetual system. I purchases were on credit Record debts fast then credits Excdade explanations from any journal entries Journal Entry Accounts Debit Credit Data Table Jan 1 Beginning inventory 15 Purchase 26 Purchase Choose from any list or enter any number in the input selds and then clica Check Answer 4 remaining

Explanation / Answer

1) Ending Inventory = 11 units

Units sold = Opening inventory+Purchase-Closing Inventory

= 9 units+(5+13) units-11 units = 16 units

Under FIFO method the units sold will be 9 units from opening inventory purchased at $165 per unit and remaining 7 units (16 units - 9 units) from 5 units purchased on Jan 15 at the cost of $166 per unit and 2 units from purchased on Jan 26 at cost of $175 per unit. Ending Inventory will be goods purchased on Jan 26 at $175 per unit.

Journal Entries (Amounts in $)

2) Cost of goods sold (for 16 units) = (9 units*$165)+(5 units*$166)+(2 units*$175)

= $1,485+$830+$350 = $2,665

  Journal Entries (Amounts in $)

3) Gross Profit = Sales - Cost of goods sold

= $8,480 - $2,665 = $5,815

Cost of Ending Inventory = 11 units*$175 per unit = $1,925

Accounts Debit Credit Inventory ($830+$2,275) 3,105 Accounts Payable 3,105 (To record the inventory purchased on account)

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