9-18-18 Carey Company sells many products. Whamo is one of its popular items. Be

Question

9-18-18 Carey Company sells many products. Whamo is one of its popular items. Below is an analysis of the inventory purchases and sales of Whamo for the month of March.. Selling Price/Unit $120 $130 Unit Cost $60 $78 Units Units 100 60 3/1 Beginning inventory 3/3 Purchase 3/4 Sales 3/10 Purchase 3/16 Sales 3/19 Sales 3/25 Sales 3/30 Purchase 70 200 $82 80 60 50 $130 $130 40 $90 Instructions (a) Using the FIFO assumption, calculate the amount charged to cost of goods sold and the amount of ending inventory for March.assuming th company uses the periodic inventory (b) Using the FIFO assumption, calculate the amount charged to cost of goods and the amount of ending inventory for March assuming the Company uses the perpetal system inventory system (c )Using the weighted average method, calculate the amount assigned to the inventory on hand on March 31. (Show computations) (c) Prepare comparative journal entries for both periodic and perpetual inventory system by using this format. (Assume FIFO method is used)D Perpetual Periodic Date Transactions Journal Enties Debit Credit lournal entries Debit Credit

Explanation / Answer

FIFO Date Units $ Total 1 Beginning Inventory 100 60 6000 3 Purchase 60 78 4680 4 Sales -70 issued at 60 -4200 Cost of Goods sold 10 Purchase 200 82 16400 16 Sales -80 40units Issued at 60 40units issued at 78 -5520 Cost of Goods sold 19 Sales -60 20units Issued at 78 40units issued at 82 -4840 Cost of Goods sold 25 Sales -50 Issued at 82 -4100 Cost of Goods sold 30 Purchase 40 90 3600 Therefore closing inventory equals 140 12020 Total Cost of goods sold = 4200+5520+4840 4100 18660 Perpetual Date Transaction Details Unit Cost Total Cost WeightedAverage cost 1 Beginning Inventory 100 60 6000 60 3 Purchase 60 78 4680 66.75 4 Sales -70 66.75 -4672.5 66.75 10 Purchase 200 82 16400 77.26724138 16 Sales -80 77.267 -6181.36 77.267 19 Sales -60 77.267 -4636.02 77.267 25 Sales -50 77.267 -3863.35 77.267 30 Purchase 40 90 3600 80.905 Inventory in Hand 140 11326.77 Periodic Date Transaction Details Cost Total 1 Beginning Inventory 100 60 6000 3 Purchase 60 78 4680 10 Purchase 200 82 16400 30 Purchase 40 90 3600 TotAL 400 30680 Averge Cost 76.7 Issued Cost 4 Sales -70 76.7 -5369 16 Sales -80 76.7 -6136 19 Sales -60 76.7 -4602 25 Sales -50 76.7 -3835 Inventory In hand 140 10738

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.