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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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