Name Class Date 21. Beginning inventory, purchases, and sales data for widgets a
ID: 2574531 • Letter: N
Question
Name Class Date 21. Beginning inventory, purchases, and sales data for widgets are as follows: (10 points) 15 units 12 units 18 units S30 14 10 units Complete the inventry cost d assuming the business maintains aperpetual inventory system·nd cala merchandise sold and ending inventory using LIFO Cost of Merchandise Sold Umit Total Unit Total Date t.Cost Cost tyCost Cost 0tyCost Cost Uait Total Total cost of merchandise sold Ending inventory value 22, Based on the information below, journalize the entries for the Seller and the Buyer. Both use·p system. (20 points) (a) Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping (b) Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420. (c) Buyer pays within the discount period. Seller point. The cost of the merchandise is $2,850. The seller prepays the freight of $75 Buyer ription DR CR Deseription DR CR Copyright Cengage Leaming Powered by CogneroExplanation / Answer
Ex: 3
Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculate merchandise sold and ending inventory using LIFO
Date
Purchases
cost of merchandise sold
inventory
Qty
Unit cost
total cost
Qty
Unit cost
total cost
Qty
Unit cost
total cost
Apr-03
15
$30
$450
Apr-11
12
$27
$324
15
$30
$450
12
$27
$324
Apr-14
12
$27
$324
6
$30
$180
9
$30
$270
Apr-21
7
$25
$175
9
$30
$270
7
$25
$175
Apr-25
7
$25
$175
3
$30
$90
6
$30
$180
Total cost of Merchandise sold
$769
Ending Inventory value
$180
Seller entry
Description
Dr
Cr
(a)
Accounts Receivable
$4,750
Sales
$4,750
Sold merchandise on account
Freight out
$75
Cash
$75
cost of goods sold
$2,850
Inventory
$2,850
to record cost of goods sold
Buyer entry
Description
Dr
Cr
Purchases
$4,750
Accounts payable
$4,750
Seller entry
(b)
Description
Dr
Cr
Sales
$700
Accounts Receivable
$700
goods returned on merchandise on account
Cost of goods sold
$420
Inventory
$420
goods are returned by customer
Goods returned recorded in inventory
Buyer entry
Description
Dr
Cr
Accounts payable
$700
Purchases
$700
Goods returned
Seller entry
©
Description
Dr
Cr
Cash (4750 - 700)
$4050
Accounts Receivable
$4050
cash received on account of credti sales
(cash received)
Buyer entry
Description
Dr
Cr
Accounts payable
$4050
cash
$4050
cash paid on account of credti purchases
Ex: 3
Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculate merchandise sold and ending inventory using FIFO
Date
Purchases
cost of merchandise sold
inventory
Qty
Unit cost
total cost
Qty
Unit cost
total cost
Qty
Unit cost
total cost
Apr-03
12
$45
$540
Apr-11
13
$47
$611
12
$45
$540
13
$47
$611
Apr-14
12
$45
$540
6
$47
$282
7
$47
$329
Apr-21
9
$60
$540
7
$47
$329
9
$60
$540
Apr-25
7
$47
$329
3
$60
$180
6
$60
$360
Total cost of Merchandise sold
$1331
Ending Inventory value
$360
Date
Purchases
cost of merchandise sold
inventory
Qty
Unit cost
total cost
Qty
Unit cost
total cost
Qty
Unit cost
total cost
Apr-03
15
$30
$450
Apr-11
12
$27
$324
15
$30
$450
12
$27
$324
Apr-14
12
$27
$324
6
$30
$180
9
$30
$270
Apr-21
7
$25
$175
9
$30
$270
7
$25
$175
Apr-25
7
$25
$175
3
$30
$90
6
$30
$180
Total cost of Merchandise sold
$769
Ending Inventory value
$180
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