49. Elly Company uses a periodic inventory system. Details for the inventory acc
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49. Elly Company uses a periodic inventory system. Details for the inventory account for the month of January, 2016 are as follows:
Units Per unit price Total
Balance, 1/1/16 200 $5.00 $1,000
Purchase, 1/15/16 100 5.30 530
Purchase, 1/28/16 100 5.50 550
An end of the month (1/31/16) inventory showed that 150 units were on hand. How many units did the company sell during January, 2016?
50. Elly Company uses a periodic inventory system. Details for the inventory account for the month of January, 2016 are as follows:
Units Per unit price Total
Balance, 1/1/16 200 $5.00 $1,000
Purchase, 1/15/16 100 5.30 530
Purchase, 1/28/16 100 5.50 550
An end of the month (1/31/16) inventory showed that 150 units were on hand. If the company uses FIFO and sells the units for $9 each, what is the gross profit for the month?
46. A company just starting business made the following four inventory purchases in June:
June 1 150 units $ 390
June 10 200 units 598
June 15 200 units 630
June 28 150 units 510
$2,128
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand.
The inventory method which results in the highest gross profit for June is
47. A company purchased inventory as follows:
150 units at $6
350 units at $7
The average unit cost for inventory is
44. A company just starting business made the following four inventory purchases in June:
June 1 150 units $ 390
June 10 200 units 598
June 15 200 units 630
June 28 150 units 510
$2,128
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
45. A company just starting business made the following four inventory purchases in June:
June 1 150 units $ 390
June 10 200 units 598
June 15 200 units 630
June 28 150 units 510
$2,128
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
39. Heathroton Company's goods in transit at December 31 include:
sales made purchases made
(1) FOB destination (3) FOB destination
(2) FOB shipping point (4) FOB shipping point
Which items should be included in Fetherston's inventory at December 31?
40. Quayle Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:
Date Purchases Sales
Jan. 14 380 @ $15
17 250 @ $10
25 250 @ $12
29 260 @ $17
Quayle does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31.
The cost of the inventory at January 31, under the FIFO method is:
41. Quayle Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as follows:
Date Purchases Sales
Jan. 14 380 @ $15
17 250 @ $10
25 250 @ $12
29 260 @ $17
Quayle does not maintain perpetual inventory records. According to a physical count, 360 units were on hand at January 31.
The cost of the inventory at January 31, under the LIFO method is:
.
42. Bud's Place recorded the following data:
Units Unit
Date Received Sold On Hand Cost
1/1 Inventory 500 $2.40
1/8 Purchased 1,000 1,500 3.00
1/12 Sold 1,200 300
The weighted average unit cost of the inventory at January 31 is:
. Company M sells $900 of merchandise on account to Company N with credit terms of 1/15, n/30. If Company N remits a check taking advantage of the discount offered, what is the amount of Company N’s check?
32. Python Company sells merchandise on account for $5,000 to Monte Company with credit terms of 2/10, n/30. Monte Company returns $1,500 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?
Explanation / Answer
49.) CALCULATION OF SALES DURING JANUARY 2016
50) UNITS SOLD DURING THE MONTH=250 UNITS
SELLING PRICE PER UNIT=$9
SALES=$9*250 UNITS=$2,250
USING FIFO METHOD
COST OF GOODS SOLD= 200 UNITS @ $5 AND 50 UNITS @ $5.3=$1,265
GROSS PROFIT FOR THE MONTH=$2,250-$1,265=$985
(46) UNITS SOLD=UNITS PURCHASED-CLOSING INVETORY=700 UNITS-200 UNITS=500 UNITS
CALCULATION OF COST OF GOODS SOLD UNDER FOLLOWING METHODS:
HENCE FIFO METHOD WILL GENERATE HIGHEST PROFIT AS COST OF GOODS SOLD IS LESS IN FIFO METHOD
(47)AVERAGE UNIT COST =TOTAL COST/NO.OF UNITS=
(150UNITS*$6+350 UNITS*$7)/150 UNITS+350 UNITS
=$3,350/500 UNITS=$6.7
(44)
UNITS SOLD=UNITS PURCHASED-CLOSING INVETORY=700 UNITS-200 UNITS=500 UNITS
CALCULATION OF COST OF GOODS SOLD
(45)CLOSING INVETORY=200 UNITS
AVERAGE COST=TOTAL COST /TOTAL NO.OF UNITS=$2,128/700 UNITS=$3.04
USING AVERAGE COST METHOD COST OF CLOSING INVENTORY=200 UNITS*$3.04=$608
PARTICULARS UNITS OPENING INVENTORY AS ON 1/1/16 200 ADD:PURCHASE AS ON 1/15/16 100 ADD:PURCHASE AS ON 1/15/16 100 LESS:CLOSING INVENTORY ON 1/31/16 150 SALES DURING JANUARY 250Related Questions
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