Johnson Company uses a perpetual inventory system. The January 2018 inventory information is as follows. Assume cash purchases and sales.DATADateJan 1DescriptionInventory on handUnitsPer Unit1,000 $4Jan 3Purchase3,000 $5Jan 6Sale2,750 $10Jan 15Purchase5,000 $6Jan 22Sale4,500 $10 Journalize Johnson Company's inventory transactions using the FIFO method.(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions or Enteranswers 1 tabs or iftype the numbers in, you will be marked wrong.)FIFO method:DateJanuary03Account/ExplanationDebitCredityou| to record purchase of 3,000 units of inventory at $5 per unit.06to record sale of 2,750 units at $10 per unit.to record FIFO cost of 2,750 units of inventory sold.1522| to record purchase of 5,000 units at $6.|to record sale of 4,500 units of inventory at $10 each.22to record FIFO cost of 4,500 units of inventory sold.

On January 1, the company had 1,000 units in inventory at a cost of $4 per unit. This gives a total…

Answered: Johnson Company uses a perpetual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 80 units @ $50.60 per unit 215 units @ $55.60 per unit Units Sold at Retail March 1 March 5 March 9 March 18 Beginning inventory Purchase Sales Purchase 240 units @ s85.60 per unit 75 units @ $60.60 per unit 130 units @ $62.60 per unit March 25 Purchase March 29 Sales 110 units @ $95.60 per unit Totals 500 units 350 units ok Problem 5-1A (Algo) Part 4 it 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55 units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) nces Weighted Average Gross Margin FIFO LIFO Specific ID Sales Less: Cost of goods sold Gross…
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Knowledge Check Crane Works' uses a periodic inventory system. Its accounting records show the following as of December 31, 2025. Inventory, Dec. 31, 2025 Purchase Returns and Allowances Inventory, Jan. 1, 2025 Cost of goods purchased Cost of goods sold $ $4,050 $ 730 5,550 Compute cost of goods purchased and cost of goods sold. Freight-In Purchases Purchase Discounts $1,800 95,100 1,480 Sused Submit Answer
Liverpool Company uses a perpetual inventory system. The following table shows the beginning inventory, the purchases and sales of product X during the current year 2019: Date Description Unit Quantity (unit) Total Cost 13 Jan 10 Apr 21 Jul 18 Aug | 23 Oct 11 Nov Beginning inventory Purchases Purchases Sales Purchases Sales $6,000 $4,800 S12,000 60 S100 40 S120 100 S120 80 S110 S17,600 160 50 Required: (SHOW WORKINGS) Using First-In, First-Out (FIFO) method, calculate (i) and (ii): (i) Cost of Goods Sold for the year ended 31 December 2019. (ii) the cost of Ending Inventory as at 31 December 2019.
The following inventory transactions apply to Green Company for Year 2. January 1 Purchased 240 units @ $10 April 1 Sold 120 units @ $19 August 1 Purchased 420 units @ $11 December 1 Sold 525 units @ $20 The beginning inventory consisted of 165 units at $11 per unit. All transactions are cash transactions. Required Record these transactions in general journal format assuming Green uses the FIFO cost flow assumption and keeps perpetual records. Compute cost of goods sold for Year 2.
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Bins Incorporated uses the periodic inventory system. The following table shows beginning inventory and inventory purchases for 2020: Month Beginning Inventory January February March Totals Sales Units Units 2,240 2,880 1,960 3,000 2,080 2,800 2,720 8,680 9,000 Purchases Cost per unit $5.00 $7.00 $5.00 $7.00 Totals $11,200 $13,720 $10,400 $19,040 $54,360 Relative to March, the company projects a 5 percent increase in cost of goods sold during April. The desired ending inventory balance for April is $2,400. Romaguera Inc pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of March 31 was $6,800. Required: Based on the FIFO inventory valuation methods answer the following questions. You may round your final answer to the nearest dollar. What is the ending inventory balance at the end of March? $ What is the total cost of goods sold at the end of…

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