1, On September 1, 2018, Daylight Donuts signed a $291,000, 9%, six-month note p
ID: 2553230 • Letter: 1
Question
1,
On September 1, 2018, Daylight Donuts signed a $291,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2019. Daylight Donuts should report interest payable at December 31, 2018, in the amount of (Do not round your intermediate calculations):
$13,095.
$0.
$4,365.
$8,730.
________
2.
Inventory records for Marvin Company revealed the following:
Marvin sold 2,000 units of inventory during the month. Cost of goods sold assuming weighted-average cost would be (Do not round your intermediate calculations and round your final answer to nearest dollar amount. Round weighted-average unit cost to four decimals if necessary):
$14,360.
$14,805.
$14,680.
$14,733.
___________
3.
During 2018, a company sells 170 units of inventory for $52 each. The company has the following inventory purchase transactions for 2018:
Actual sales by the company include its entire beginning inventory, 86 units of inventory from the May 5 purchase, and 29 units from the November 3 purchase.
Calculate cost of goods sold and ending inventory for 2018 assuming the company uses specific identification.
of Units Unit
Cost Mar. 1 Beginning inventory 1,010 $7.18 Mar. 10 Purchase 500 7.34 Mar. 16 Purchase 830 7.42 Mar. 23 Purchase 520 7.67
Explanation / Answer
1 Interest payable at December 31, 2018=291000*9%/12*4= $8730 2 Date Transaction Number Unit Total of Units Cost Mar. 1 Beginning inventory 1010 7.18 7251.8 Mar. 10 Purchase 500 7.34 3670 Mar. 16 Purchase 830 7.42 6158.6 Mar. 23 Purchase 520 7.67 3988.4 2860 21068.8 Weighted-average unit cost=21068.8/2860= $7.3667 Cost of goods sold =2000*7.3667= $14733 3 Cost of goods sold=(55*41)+(86*40)+(29*39)= $6826 Ending inventory=9420-6826= $2594
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