Starshine Coffee Equipment sells European style coffee makers and uses a perpetual inventory system. Its inventory records show that on June 1, Starshine had 12 units on hand at a cost of $220 each. Transactions related to purchase and sale of coffee makers in June were as follows: Per unit Date Transaction Units Cost Sales price June 10 Sale 3 $510 June 15 Sale 4 $510 June 20 Purchase 5 $230 June 22 Purchase 6 $240 June 30 Sale 10 $500 For each of the following cost formulas, calculate the ending inventory as at June 30 and the cost of goods sold for the month of June. Prove the cost of goods sold calculations (Use Average method)

Starshine Coffee Equipment sells European style coffee makers and uses a perpetual inventory system. Its inventory records show that on June 1, Starshine had 12 units on hand at a cost of $220 each. Transactions related to purchase and sale of coffee makers in June were as follows: Per unit Date Transaction Units Cost Sales price June 10 Sale 3 $510 June 15 Sale 4 $510 June 20 Purchase 5 $230 June 22 Purchase 6 $240 June 30 Sale 10 $500 For each of the following cost formulas, calculate the ending inventory as at June 30 and the cost of goods sold for the month of June. Prove the cost of goods sold calculations (Use Average 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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...

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The XZ Ltd. is a retailer and uses the Perpetual Inventory System. The below information is available regarding the purchases and sales activities: Purchase price: $4.20 Selling price: $5.70 Purchase discount (paid in 10 days): 6% Sales discount (received in 15 days): 10% Calculate the correct entries for its business activities. The XZ purchased 300 units on credit from AA on the 2nd of July. The XZ sold 200 units on credit to DSX on the 3rd of July. The XZ returned 50 defective units to AA on the 9th of July. The XZ paid cash to AA on the 11th of July. DSX paid its purchase on the 12th of July.
Metlock Coffee Equipment sells European-style coffee makers and uses a periodic inventory system. Its inventory records show that at June 1, Metlock had 14 units on hand at a cost of $242 each. Transactions related to purchase and sale of coffee makers in June were as follows: Per Unit Date Transaction Units Cost Sales Price June 10 Sale 8 $548 15 Sale 5 $548 20 Purchase 6 $232 22 Purchase 4 $256 30 30 Sale 7 $516 For each of the following cost formulas, calculate the ending inventory at June 30 and the cost of goods sold for the month of June. (Round the weighted average cost per unit and final answers to 2 decimal places, e.g. 5,275.25.) Ending inventory $ Cost of goods sold $ H - L FIFO +A $ Weighted Average +A $
Canadian Tire sells soccer balls and uses a perpetual inventory system. Canadian Tires inventory records show that at March 1, there were 50 units on hand at a cost of $15 each. Transactions related to purchase and sale of soccer balls in March were as follows: Per unit Cost 17 $14 Date Mar 2 Transaction Purchase Sale Units Sales price Mar 5 60 $20 Mar 15 Purchase 80 $12 Mar 30 Sale 50 $20 Instructions a. For each of the following cost formulas, calculate the ending inventory as at March 31 and the cost of goods sold for the month of March. i. FIFO ii. Average b. Assume that Canadian Tire is motivated to report the highest profit possible. Which method will they prefer?
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Tesco Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2018, the number of gadgets purchased and sold was as follows: Purchases: Jan 1 Jan 3 Jan 8 Jan 15 Jan 27 300 units at $3.50 500 units at $4.50 100 units at $5.00 100 units at $5.50 100 units at $6.00 Sales: Jan 10 400 units* Jan 20 200 units** * For specific identification, sold 150 units of January 1 purchase, 150 units of the January 3 purchase and 100 from January 8 purchase. **For specific identification, sold 50 units of January 1 purchase and 150 units from January 3 purchase. Assume the January 10 units were sold on account for $20 each, and the January 20 units were sold on account for $22 each. Required: 1. Complete the inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: a. FIFO
June Corp. sells one product and uses perpetual inventory system. The beginning inventort consisted of 10 units that cost P20 per unit. During the current month, the company purchased 60 units at P20 each. Sales during the month totaled 45 units for P43 each. What is the cost of goods sold using the FIFO method?

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			Per unit
Date	Transaction	Units	Cost	Sales price
June 10	Sale	3		$510
June 15	Sale	4		$510
June 20	Purchase	5	$230
June 22	Purchase	6	$240
June 30	Sale	10		$500