ASSIGNMENT 3.docx

# ASSIGNMENT 3.docx - PRINCIPLES OF ACCOUNTING 1 ASSIGNMENT#3...

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PRINCIPLES OF ACCOUNTING 1 ASSIGNMENT #3 QUESTION 1 The Surfboarding Company provided the following information for one of its top-selling surfboards: Total \$ Date Item Units per unit Nov.1 Beginning inventory 26 \$197 5 Sale (12) 300 12 Purchase 65 210 16 Sale (50) 305 19 Purchase 38 215 22 Sale (62) 310 26 Purchase 40 216 Required: Calculate the ending inventory using a moving weighted-average assuming a perpetual inventory system. Purchases Cost of Goods Sold Inventory on Hand Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Nov. 1 26 \$197 \$5,122 5 12 \$197 \$2,364 14 197 2,758 12 65 \$210 \$13,650 79 207.7 16,408.3 16 50 207.7 10,385 29 207.7 6,023.3 19 38 215 8,170 67 211.84 14,193.3 22 62 211.84 13134.08 5 211.84 1,059.2 26 40 216 8,640 45 215.53 9,698.9 Totals 143 \$ 30,460 124 \$25,883.08 45 \$ 9698.9 QUESTION 2 Kalakaua Merchandising had the following transactions during May: May 1 Beginning inventory was 20 units valued at \$25 per unit. May 5 Purchased 80 units of merchandise on account for \$2,160, terms n/15, FOB shipping point. May 9 Paid transportation cost on the May 5 purchase, \$240. May 10 returned two units of defective merchandise purchased on May 5. May 11 Sold 30 units for \$50 per unit on account. May 15 Paid for the May 5 purchase, less the return. May 20 Sold 10 units for \$50 per unit on account.

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