BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,8oo. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel" tablets. 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse. The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) July 8 July 31 August 4 A new batch of 67 tablets was purchased at a total cost of $465,650 5 of the tablets purchased on August 4 were returned to the supplier, as they were not of the model ordered. August 10 August 31 During the month 60 tablets were sold at a price of $10,350 each. A customer, to whom 9 tablets were sold during the first business day of August, returned 3 of the instruments, as they were of another brand. September 4 | Owing to an increased demand, a further 115 tablets were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. September 10 September 30 121 tablets were sold during September at a unit selling price of $11,085. September 30 An actual count of inventory was carried out which revealed that there were 34 units of the "Alcatel" brand of merchandise in the store room. Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required: Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method of inventory valuation to determine BAYWEST's cost of goods sold for the quarter and the value of ending. (A) Given that selling, distribution and administrative costs associated with the Alcatel brand of tablets for the quarter were $42,844, $38,120 and $157,076 respectively, prepare an income statement for BAYWEST Stationery & Supplies (Alcatel) for the quarter ended September (B) 30, 2020. (C) Journalize the transactions for the month of July, assuming the company uses a: Periodic inventory system Perpetual inventory system Wheels & Deals Limited uses 60,000 batteries each year in its production of motorcycles at a cost (D) of $450 per battery. The cost of placing an order is $75.00. The cost of holding one unit of inventory for one year is o.5% of the unit purchase price. Currently, Wheels & Deals Limited places 12 orders of 5,000 batteries per year. Compute the cost Wheels & Deals' current inventory policy. Is this the minimum cost? Explain.

Late in the year, Software City began carrying WordCrafter, a new word processing software program. At December 31, Software City's perpetual Inventory records included the following cost layers in its Inventory of WordCrafter programs. Purchase Date Nov. 14 Dec. 12 Total available for sale at Dec. 31 Quantity 10 28 38 Unit Cost $ 400 320 $ Total Cost $ 4,000 8,960 $12,960 a. At December 31, Software City takes a physical Inventory and finds that all 38 units of WordCrafter are on hand. However, the current replacement cost (wholesale price) of this product is only $250 per unit. 1. Prepare the entries to record this write-down of the Inventory to the lower-of-cost-or-market at December 31. (Company policy is to charge LCM adjustments of less than $2,000 to Cost of Goods Sold and larger amounts to a separate loss account.) 2. Prepare the entries to record the cash sale of 32 WordCrafter programs on January 9, at a retail price of $380 each. Assume that Software City uses the FIFO flow…

Sheridan Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2025. Jim Alcide, controller for Sheridan, has gathered the following data concerning inventory. At May 31, 2025, the balance in Sheridan's Raw Materials Inventory account was $493,680. Alcide summarized the relevant inventory cost and market data at May 31, 2025, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Sheridan's May 31, 2025, financial statements for inventory under the lower-of-cost-or-market rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Consider the following expanded data at May 31, 2025. Assume Sheridan uses LIFO inventory costing. Cost…

Air Force Surplus began July 2018 with 100 stoves that cost $10 each. During the month, the company made the following purchases at cost: (Click the icon to view the purchases.) The company sold 300 stoves, and at July 31, the ending inventory consisted of 70 stoves. The sales price of each stove was $48. Read the requirements. Requirement 1. Determine the cost of goods sold and ending inventory amounts for July under the average-cost, FIFO, and LIFO costing methods. Round the average cost per unit to two decimal places, and round all other amounts to the nearest dollar. Number of units Average cost Cost of goods sold Ending inventory Requirements 1. Determine the cost of goods sold and ending inventory amounts for July under the average-cost, FIFO, and LIFO costing methods. Round the average cost per unit to two decimal places, and round all other amounts to the nearest dollar. 2. Explain why cost of goods sold is highest under LIFO. Be specific. 3. Prepare the Air Force Surplus…