14. JiCo uses the periodic method. Its beginning inventory is $43,000, purchases
ID: 2390722 • Letter: 1
Question
14. JiCo uses the periodic method. Its beginning inventory is $43,000, purchases are $321,000, F.O.B. destination, purchase returns are $17,000 and freight is $9,000. The balance in JiCo's ledger Purchases account is....
A.) $330,000 B.) $317,000 C.) $321,000 D.) $304,000
20. XoCo, which begins business in May and uses the perpetual method and moving average costing, shows the following data:
Purchases
May 4 1,000 @ $7
May 14 1,400 @ $8
May 19 2,000 @ $10
Sales
May 11 400 @ $11
May 21 1,500 @ $15
The balance in XoCo's inventory account on May 31 is....
A.) $22,125 B.) $20,833 C.) $21,705 D.) $23,875
Explanation / Answer
14) Calculate balance in JiCo's ledger purchase account is :
Purchase account = 321000-17000 = 304000
So answer is d) $304000
20) Moving average method :
2000
7.7
15400
So answer is a) $22125
Date Unit Unit cost Total cost Unit Unit cost Cost of goods sold Unit Unit cost Ending inventory cost May 4 1000 7 7000 1000 7 7000 May 11 400 7 2800 600 7 4200 May 14 1400 8 112002000
7.7
15400
May 19 2000 10 20000 4000 8.85 35400 May 21 1500 8.85 13275 2500 8.85 22125Related Questions
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