Adjust for Inventory. The physical inventory count indicated 13,000 t-shirts were on hand. To complete this entry, you will need to: Record the dollar value of the ending inventory (13,000 shirts x Cost of each shirt); Reverse the 2020 ending inventory (Remember: Graphix uses a periodic FIFO inventory method); Reverse the Purchases account (as this is a temporary account) and the purchase returns account (also a temporary account); Calculate COGS using the above values. merchandise inventory for the previous year is $172,203. The costs of the shirts were $8 for 18000, then $9.50 for 15000 with 10000 returned, then $12 for 25000, then $10 for 17500, then $9 for 23000 with 7000 shirts gained back from sale returns, then $ 10.50 for 38000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Adjust for Inventory. The physical inventory count indicated 13,000 t-shirts were on hand. To complete
this entry, you will need to: Record the dollar value of the ending inventory (13,000 shirts x Cost of each
shirt); Reverse the 2020 ending inventory (Remember: Graphix uses a periodic FIFO inventory method);
Reverse the Purchases account (as this is a temporary account) and the purchase returns account (also a
temporary account); Calculate COGS using the above values. merchandise inventory for the previous
year is $172,203. The costs of the shirts were $8 for 18000, then $9.50 for 15000 with 10000 returned, then
$12 for 25000, then $10 for 17500, then $9 for 23000 with 7000 shirts gained back from sale returns, then $
10.50 for 38000
Transcribed Image Text:Adjust for Inventory. The physical inventory count indicated 13,000 t-shirts were on hand. To complete this entry, you will need to: Record the dollar value of the ending inventory (13,000 shirts x Cost of each shirt); Reverse the 2020 ending inventory (Remember: Graphix uses a periodic FIFO inventory method); Reverse the Purchases account (as this is a temporary account) and the purchase returns account (also a temporary account); Calculate COGS using the above values. merchandise inventory for the previous year is $172,203. The costs of the shirts were $8 for 18000, then $9.50 for 15000 with 10000 returned, then $12 for 25000, then $10 for 17500, then $9 for 23000 with 7000 shirts gained back from sale returns, then $ 10.50 for 38000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education