Demo_for_Chapter_7_Solutions

Demo_for_Chapter_7_Solutions - Question#1 Demo Problems for...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Question #1- Demo Problems for Chapter 7 Allsigns Company uses a periodic inventory system. At the end  of   the   annual   accounting   period,   December   31,   2007,   the  accounting   records   for   the   most   popular   item   in   inventory  showed the following: Transactions   Units   Unit  Cost Beginning inventory, January 1,  2007     400    $ 3 0 Transactions during 2007:              a . Purchase, February 20     600      3 2 b . Sale, April 1 ($46 each)     (70 0 )       c . Purchase, June 30     500      3 6 d . Sale, August 1 ($46 each)     (10 0 )       e . Sales return, August 5 (related  to transaction  d )     20        Compute the amount of goods available for sale and the ending inventory.  (Round your answer to the nearest dollar amount.) **ANYTIME a sale and  return net it out Goods available for sale for all methods:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Units Unit Cost Total Cost 400 30 12000 600 32 19200 500 36 18000 Goods Available for Sale (GAFS) 1500 49200 January 1, ginning invent 400 $30 $12,000 ) = 720 units Requirement 2: Compute the amount of ending inventory, and cost of goods sold  at December 31, 2007, under each of the following inventory  costing   methods.   (Round   your   answer   to   the   nearest   dollar 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This homework help was uploaded on 02/20/2009 for the course AEM 221 taught by Professor Little,j. during the Fall '08 term at Cornell.

Page1 / 7

Demo_for_Chapter_7_Solutions - Question#1 Demo Problems for...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online