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On May 1, Blossom Company had 380 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month May for the company is as follows: May 4 (a) 14 29 Purchases 1,400 @ $4.00 740 @ 400 @ $4.64 $4.30 Cost of goods sold Ending inventory $ May 3 $ 16 18 Sales Calculate the cost of goods sold and ending inventory using FIFO. FIFO $7.00 1,000 @ $7.00 260 @ 520 @ $7.50

On May 1, Blossom Company had 380 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month May for the company is as follows: May 4 (a) 14 29 Purchases 1,400 @ $4.00 740 @ 400 @ $4.64 $4.30 Cost of goods sold Ending inventory $ May 3 $ 16 18 Sales Calculate the cost of goods sold and ending inventory using FIFO. FIFO $7.00 1,000 @ $7.00 260 @ 520 @ $7.50

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 3E: Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A...
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On May 1, Blossom Company had 380 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month May for the company is as follows: May 4 (a) 14 29 Purchases 1,400 @ $4.00 740 @ 400 @ $4.64 $4.30 Cost of goods sold Ending inventory $ May 3 $ 16 18 Sales Calculate the cost of goods sold and ending inventory using FIFO. FIFO $7.00 1,000 @ $7.00 260 @ 520 @ $7.50
Transcribed Image Text:On May 1, Blossom Company had 380 units of inventory on hand, at a cost of $4.00 each. The company uses a perpetual inventory system. All purchases and sales are on account. A record of inventory transactions for the month May for the company is as follows: May 4 (a) 14 29 Purchases 1,400 @ $4.00 740 @ 400 @ $4.64 $4.30 Cost of goods sold Ending inventory $ May 3 $ 16 18 Sales Calculate the cost of goods sold and ending inventory using FIFO. FIFO $7.00 1,000 @ $7.00 260 @ 520 @ $7.50
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(b) Prepare journal entries to record the May 4 purchase and the May 3 and 16 sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles May 3 May 3 May 4 (To record sales on account.) (To record cost of goods sold.) Debit Credit || |||
Transcribed Image Text:(b) Prepare journal entries to record the May 4 purchase and the May 3 and 16 sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles May 3 May 3 May 4 (To record sales on account.) (To record cost of goods sold.) Debit Credit || |||
May 4 May 16 May 16 (To record purchase on account.) (To record sales on account.) (To record cost of goods sold.)
Transcribed Image Text:May 4 May 16 May 16 (To record purchase on account.) (To record sales on account.) (To record cost of goods sold.)
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