89.xlsx - 1 A company began its fiscal year with inventory...

Info icon This preview shows pages 1–4. Sign up to view the full content.

1 A company began its fiscal year with inventory of 191000 Purchases for the year were 950000 Cost of goods sold for the year 984000 What was the amount of ending inventory? 157000 2 Litton Industries uses a perpetual inventory system. The company began its fiscal year with inventory of 278000 Purchases of merchandise on account during the year totaled 900000 Merchandise costing 913000 was sold on account for 1530000 Prepare the journal entries to record these transactions. Record the purchase of inventory on account: Inventory 900000 Accounts payable 900000 Record sales on account: Accounts receivable 1530000 Sales revenue 1530000 Record the cost of goods sold Cost of goods sold 913000 Inventory 913000 3 On December 28, 2016, VTC purchased 1200 units of a new satellite uplink system from Tristar Communications for 55 each. The terms of each sale were 0 10 n30. VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on Jan. 6th. Record the inventory purchase on account. Inventory 66000 Accounts payable 66000 Record the payment to Tristar Communications Accounts payable 66000 ** Inventory 0 Cash 66000 **The purchase discounts account is used in a periodic system.
Image of page 1

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

4 On December 28, 2016, VTC purchased 12 units of a new satellite uplink system from Tristar Communications for 22000 each. The terms of each sale were 0.02 10 n30. VTC uses the net method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on Jan. 6th. Record the inventory purchase on account. ** Inventory 258720 Accounts payable 258720 Record the payment to Tristar Communications Accounts payable 258720 Cash 258720 **The purchase discounts account is used in a periodic system. 5 Samuelson and Messenger (S&M) began 2016 with 3500 units of its one product. These units were purchased near the end of 2015 for $7.90 each. During the month of January, 13000 units were purchased on Jan 8 for $5.80 each and another 7500 units were purchased on Jan 19 for $5.30 each. Sales of 9500 units and 8500 units were made on Jan 10 and Jan 25, respectively. There were 6000 units on hand at the end of the month. S&M uses a periodic inventory system. Calculate ending inventory and cost of goods sold for January us Cogs available for sale COGS Periodic FIFO # of units CPU COGS avail # units sold CPU COGS Beg inv. 3500 $8 $27,650 3500 $8 $27,650 Purchases: Jan 8 13000 $6 $75,400 14500 $6 $84,100 Jan 19 7500 $5 $39,750 0 $5 $0 Total 24000 $142,800 18000 $111,750 Calculate ending inventory and cost of goods sold for January using a Cogs available for sale COGS Periodic FIFO # of units Avg. CPU COGS avail # units sold CPU COGS Beg inv. 3500 $7.90 27650 Purchases: Jan 8 13000 $5.80 $75,400 Jan 19 7500 $5.30 $39,750 Total 24000 $5.95 $142,800 18000 $5.95 $107,100.00 FIFO Avg. Cost
Image of page 2
6 Samuelson and Messenger (S&M) began 2016 with 210 units of its one product. These units were purchased near the end of 2015 for $20 each. During the month of January, 105 units were purchased on Jan 8 for $23 each and another 210 units were purchased on Jan 19 for $25 each.
Image of page 3

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

Image of page 4
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '15
  • Corkern
  • Fiscal Year, FIFO and LIFO accounting, COGS

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern