Questlon 6 (6 points) Alpha Company uses the pertodic Inventory system for purch
ID: 2579150 • Letter: Q
Question
Questlon 6 (6 points) Alpha Company uses the pertodic Inventory system for purchase &sales; of merchandise. The value of Inventorys based on perlodic system. On January 1, 2016, begining Inventory consisted of 350 units of widgets costing $10 each Alpha prepares monthly Income statements. The following events occurred during the month of lan: Date Activity a an.3 Purchased on account 350 widgets for $11 each ban 5Sold on account 400 widgets for $30 sach lan. 10 Purchased on account 625 widgets for $12 each d Jan 12 Retuned SO widgets recelved from Jan. 10 purchase. e lan 13 Paid for the purchases made on lan. 3. lan 21 Sold on account 550 widgets for $30 each 9 Jan 25 Recetved payment for the sale made on Jan. s. Jan 26 Pald for the purchases made on lan. 10 lan 31 Recetved payment for the sale made on Jan 21 0 f9 10 f11 f12 pause pExplanation / Answer
CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD Purchases Sales Balance Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Jan, 01 Openining Invenetory 350 $10 $3,500 a Jan, 03 Purchase 350 $11 $3,850 Jan, 05 Sold from Inventory 350 $10 $3,500 Sold from Purhcase , 05 50 $11 $550 300 $11 $3,300 Jan,10 Purchase 625 $12 $7,500 300 $11 $3,300 625 $12 $7,500 Jan, 12 Purcahse Return -50 $12 -$600 300 $11 $3,300 575 $12 $6,900 Jan, 13 Paid for Purchase 0 $0 $0 Jan, 21 Sold 300 $11 $3,300 Sold 250 $12 $3,000 325 $12 $3,900 Jan, 25 Payment Received 0 $0 $0 Jan, 26 Paid for depreciation 0 $0 $0 Jan,31 Received Payment 0 $0 $0 Cost of Goods Available for Sale 1275 $14,250 950 $10,350 325 $12 $3,900 Answer =1 Closing Inventory 325 Units @ 12 Per unit = Total Value = $ 3,900 Answer = 2 Csot of Goods Available For Sale: = 1275 Units Total Value = $ 14,250 Answer = 3 Cost of Goods Sold =950 Units Value = $ 10,350
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