FAD Company uses a periodic inventory system and its inventory records for the p
ID: 2552666 • Letter: F
Question
FAD Company uses a periodic inventory system and its inventory records for the period contain the following information:
6.
Required information
Use the information above to answer the following question. What is the amount of cost of goods available for sale?
$13,750
$11,250
$5,000
$17,500
7.
Required information
Use the information above to answer the following question. The journal entry necessary at the end of the period to transfer beginning inventory and net purchases to cost of goods sold will include which of the following?
Debit Purchases for $11,250
Credit Inventory for $6,250
Debit Cost of Goods Sold for $11,250
Debit Inventory for $6,250
8.
Required information
Use the information above to answer the following question. The journal entry necessary at the end of the period to adjust cost of goods sold for the ending inventory still on hand will include which of the following?
Credit Cost of Goods Sold for $11,250
Credit Inventory for $5,000
Debit Inventory for $6,250
Credit Purchases for $10,200
Beginning inventory (75 units @ $50/unit) $3,750 Purchases (150 units @ $50/unit) 7,500 Ending inventory (125 units @ $50/unit) 6,250Explanation / Answer
Q6. Answer is $ 11250 Cost of Goods available for sale: Beginning Inventory 3750 Add: Purchases 7500 Cost of Goods available for sale: 11250 Q7. Debit Cost of Goods sold $ 11250 Journal entry for the transfer is; Cost of Goods sold Dr. 11250 Purchases 7500 Inventory (begininig) 3750 Q8. Answer is Debit Inventory $6250 Journal entry is: Inventory Dr. 6250 Cost of goods sold 6250
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