Perpetual: LIFO and Moving-Average Kelley Company began business on January 1, 20-1. Purchases and sales during the month of January are shown. Date Purchases Sales Units Cost/Unit Units Jan. 1 80 $1.00 Jan, 4 390 1.10 Jan. 5 320 Jan. 10 300 1.20 Jan. 12 200 Jan. 15 190 1.30 Jan. 18 490 1.50 Jan. 22 780 Jan. 27 70 Jan. 31 290 1.60 Required: Calculate the total amount to be assigned to cost of goods sold for January and the ending inventory on January 31, under each of the following methods. In your calculations round the average unit cost to four decimal places and answers to the nearest cent. Cost of Goods Sold Inventory on Hand 1. Perpetual LIFO inventory method 2. Perpetual moving-average inventory method

Perpetual: LIFO and Moving-Average Kelley Company began business on January 1, 20-1. Purchases and sales during the month of January are shown. Date Purchases Sales Units Cost/Unit Units Jan. 1 80 $1.00 Jan, 4 390 1.10 Jan. 5 320 Jan. 10 300 1.20 Jan. 12 200 Jan. 15 190 1.30 Jan. 18 490 1.50 Jan. 22 780 Jan. 27 70 Jan. 31 290 1.60 Required: Calculate the total amount to be assigned to cost of goods sold for January and the ending inventory on January 31, under each of the following methods. In your calculations round the average unit cost to four decimal places and answers to the nearest cent. Cost of Goods Sold Inventory on Hand 1. Perpetual LIFO inventory method 2. Perpetual moving-average inventory method

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1RE: Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare...

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Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.
Required information [The following information applies to the questions displayed below.] Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,810; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $72,000 from National Bank for general use; signed a 12-month, 7% annual interest-bearing note for the money. June 3 Purchased merchandise for resale on account. The invoice amount was $17,320. July 5 Paid June 3 invoice. Aug. 1 Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $27,000. Dec.20 Received a $220 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. 31 Determined wages of $9,800 were earned but not yet paid on December 31 (disregard payroll taxes). 3. Show how all of the liabilities arising from these transactions are…
Required Information [The following information applies to the questions displayed below.] Wiset Company completes these transactions during April of the current year (the terms of all Its credit sales are 2/10. n/30). Apr. 2 Purchased $14,480 of nerchandise on credit fron Noth Company, terms 2/18, n/60. 3 (a) Sold nerchandise on credit to Page Alistair, Invoice No. 768, for $4,100 (cost is $2,700). 3 (b) Purchased $1,540 of office supplies on credit from Custer, Inc. terns n/30. 4 Issued Check No. 587 to World View for advertising expense of $913. Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,500 (cost is $6,70e). Returned $95 of office supplies purchased on April 3 to Custer, Inc. Wiset reduces accounts payable by that amount. 5 6 9 Purchased $10,465 of store equipment on credit from Hal's Supply, terms n/30. Sold nerchandise on credit to Nic Nelson, Invoice No. 762, for $13,200 (cost is $6,9e0). Issued Check No. 588 to Noth Company in paynent of its April 2…
On May 2, you paid Carolina Mfg. (account number C354) for inventory purchased on Apr. 27 for $1,000. Carolina Mfg. offered terms of 2/10, n/30. Use check #8024.
A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made within 10 days?
Part IV. A. Record the following transaction of Pal Tos Sales for the month of May under the periodic inventory system and perpetual inventory system. Assume that terms for all purchases are 2/20, n/30 and terms for all sales are 1/15, n/30. Mark up for all sales is 25%. With Computation. May 5 Cash sales, P 210,000 Purchased P 550,000 merchandise from Hoo Enterprise on account. 8 Sold P 30,000 goods to Lucky Trading 11 Purchased P 150,000 merchandise from Vee Cut Sales Received P 3,000, returns of defective Merchandise Lucky Trading 15 19 Returned P 50,000 defective goods to Hoo Enterprise 22 Lucky Trading Settled its account in full 25 Paid Hoo Enterprises in full 30 Settled account with Vee Cut Sales in full B. Selected unadjusted account balance from the trial balance of Jim Crickets Cleaners for the year December 31, 2016 are as follows: With Computation Jim Cricket Cleaners Partial Unadjusted Trial Balance December 31, 2016 Debits Credits Cash P 18,000 Prepaid Rent 86,400…
F. Renz Aguhob Fireworks engaged in the following purchase transactions during the month. The entity observes the policy that all returns are made one day after the goods are received, and that all purchases are paid within the discount period. Purchase Freight Returns & Credit Trade Cash List Price FOB Terms Charges Allowances Terms Discount Payment P224,000 Shipping pt. P4,000 P 21,000 2/10,n/30 30% 126,000 Destination 90,000 Shipping pt. 41,000 Shipping pt. 357,000 Destination Required: Using the table above, calculate the amount needed to settle each purchase. 9,000 2,000 1,000 14,000 1/10,n/30 20% 7,000 2/10,n/30 9,000 24,000 3/10,n/30 20% n/30 25%
On June 5, Staley Electronics purchases 200 units of inventory on account for $19 each, with terms 2/10, n/30. Staley pays for the inventory on June 12. Required: 1. Record transactions for the purchase of inventory and payment on account using a perpetual system. 2. Now assume payment is made on June 22. Record the payment on account.
On October 5, your company buys and receives inventory costing $5,400, on terms 2/30, n/60. On October 20, your company pays the amount owed relating to the October 5 purchase.Prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the net method.
On October 23, Johnson Company purchased $100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnson Company's purchases if it pays on October 31.View Solution:
Rasheed Company uses net method to record the sales made on credit. On June 30, 2019, it made a sales of OMR 25,000 with term 3/15, n/45. Prepare the required journal entries, if: (a) On July 7 Rasheed company received full payment. (b) On July 22 Rasheed company received full payment.
Instructions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. Apr. Jun. Jul. Aug. Dec. 1 Purchased merchandise on account from Kirkwood Co., $390,000, terms n/30. 31 Issued a 30-day, 10% note for $390,000 to Kirkwood Co., on account. 30 Paid Kirkwood Co. the amount owed on the note of March 31. 1 Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 8% note. 1 Purchased tools by issuing a $216,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. 16 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. 1 Purchased equipment from Greenwood Co. for $500,000, paying $150,000 cash and issuing a series of ten 8% notes for $35,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $310,000, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due…