MN Ltd had 50 units of commodity A on hand on 1 January 2021. The following purchases and sales were made during January: Opening Balance Purchases Sales Jan 1 50 units @ $200 Opening Inventory Plus: Purchase Less: Ending Inventory COGS Jan 3 500 units @ $280 Jan 200 units @ 12 $250 Jan 25 150 units @ $210 MN Ltd uses the LIFO assumption. Fill in the table below. Please fill in the blanks by entering numbers only. Do not include space, dollar signs, or commas. $ Jan 7 Jan 27 10000 221500 ✓ 44900 186600 420 units 300 units g. Recorded the following business expenses for the year: Paid office rent: $6,000. Paid wages: $54,000. The financial year is from 1 Feb 2020 to 31 Jan 2021. The following transactions also happened in the financial year: a. MN Ltd raised a share capital of $1,000,000. b. Paid off the beginning balance of accounts payable. c. Purchased office supplies for $8,400 on credit from OfficeMax. The amount was still outstanding at the end of the financial year. d. Collected cash from a customer on account, $13,700. e. Paid dividends of $130,000. f. All the inventory purchased was paid in cash. In addition, the company sold commodity A at $350 per unit consistently throughout the financial year. At the end of the financial year, $60,000 is still outstanding and will be paid by the customer in the following financial year.
MN Ltd had 50 units of commodity A on hand on 1 January 2021. The following purchases and sales were made during January: Opening Balance Purchases Sales Jan 1 50 units @ $200 Opening Inventory Plus: Purchase Less: Ending Inventory COGS Jan 3 500 units @ $280 Jan 200 units @ 12 $250 Jan 25 150 units @ $210 MN Ltd uses the LIFO assumption. Fill in the table below. Please fill in the blanks by entering numbers only. Do not include space, dollar signs, or commas. $ Jan 7 Jan 27 10000 221500 ✓ 44900 186600 420 units 300 units g. Recorded the following business expenses for the year: Paid office rent: $6,000. Paid wages: $54,000. The financial year is from 1 Feb 2020 to 31 Jan 2021. The following transactions also happened in the financial year: a. MN Ltd raised a share capital of $1,000,000. b. Paid off the beginning balance of accounts payable. c. Purchased office supplies for $8,400 on credit from OfficeMax. The amount was still outstanding at the end of the financial year. d. Collected cash from a customer on account, $13,700. e. Paid dividends of $130,000. f. All the inventory purchased was paid in cash. In addition, the company sold commodity A at $350 per unit consistently throughout the financial year. At the end of the financial year, $60,000 is still outstanding and will be paid by the customer in the following financial year.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 6MCQ: Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is...
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