College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter C, Problem 2P
Use the information presented in Problem C-1 to solve this problem.
Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the beginning inventory and purchases of bark is as follows:
Required
Find the cost of the ending inventory by the first-in, first-out method.
Check Figure
Cost of ending inventory, $562
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Assume that Whitewall Tire Store completed the following perpetual inventory transactions for a line of tires:
i (Click the icon to view the transactions.)
Read the requirements.
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have
been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Date Quantity
Dec. 1
11
23
261
29
Totals
Purchases
Unit
Cost
Cost of Goods Sold
Total
Unit
Cost Quantity Cost
Total
Cost
Inventory on Hand
Unit
Quantity Cost
C
Total
Cost
More info
Dec. 1 Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23…
Assume that Whitewall Tire Store completed the following perpetual inventory transactions for a line of tires:
(Click the icon to view the transactions.)
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have
been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Cost of Goods Sold
Date Quantity
Dec. 1
11
23
26
29
Totals
Purchases
Unit
Cost
Total
Unit
Cost Quantity Cost
Total
Cost
Inventory on Hand
Unit
Cost
Quantity
C
Total
Cost
1.
Requirements
More info
Dec. 1
Beginning merchandise inventory
Dec. 11 Purchase
Dec. 23 Sale
Dec. 26…
Interior Wholesale uses a perpetual inventory system. Journalize the following
sales transactions for Interior Wholesale. Explanations are not required.
Jan. 4: Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to
Amesbury Furniture Store. Cost of goods is $6,000. Begin by preparing the
entry to journalize the sale portion of the transaction. Do not record the
expense related to the sale. We will do that in the following step.
Date
Jan. 4
Transactions
Jan. 4
Jan. 8
Jan. 13
Jan. 20
Accounts
Debit
Sold $12,000 of furniture on account, credit terms are 1/15, n/30, to
Amesbury Furniture Store. Cost of goods is $6,000.
Received a $300 sales return on damaged goods from
Amesbury Furniture Store. Cost of goods damaged is $150.
Interior Wholesale received payment from Amesbury Furniture Store on
the amount due from Jan. 4, less the return and discount.
Sold $4,400 of furniture on account, credit terms are 1/10, n/45,
FOB destination, to Springfield Furniture. Cost of goods is…
Chapter C Solutions
College Accounting (Book Only): A Career Approach
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