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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 Cognero

Explanation / 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