.00d. $78,700 NiCethod and FIFO costing, and shows the following data: begins op
ID: 2588400 • Letter: #
Question
.00d. $78,700 NiCethod and FIFO costing, and shows the following data: begins operati Purchases Sales February 4 May 11 July 14 September 19 December 21 700s7 400 $15 1,100$ 8 3,000@$10 1,500 $18 On December 21, what entries does NiCo record? a. Accounts Receivable 27,000 Sales 27,000 Cost of Goods Sold 15,000 Inventory 15,000 b. Accounts Receivable 27,000 Sales 27,000 Tit Cost of Goods Sold 9,200 Inventory 9,200 c. Accounts Receivable 27,000 Sales 27,000 Cost of Goods Sold 11,900 Inventorv 11,900 d. Accounts Receivable 27,000 Sales 27,000 Cost of Goods Sold 12,000 12,000 Inventory 205Explanation / Answer
Answer
C. Accounts Receivable 27,000
Sales 27,000
Cost of Goods Sold 11,900
Inventory 11,900
Working Notes
FIFO Perpetual
Month
Purchase
Sales
Balance
Quantity
Price ($)
Value ($)
Quantity
Price ($)
Quantity
Price ($)
Value ($)
February 4
700
7
4,900
-
-
700
7
4,900
May 11
-
-
-
400
7
300
7
2,100
July 14
1,100
8
8,800
-
-
300
1,100
7
8
10,900
September 19
3,000
10
30,000
-
-
300
1,100
3,000
7
8
10
40,900
*December 21
-
-
-
1500
300 X 7
1,100 X 8
100 X 10
2,900
10
29,000
*December 21
Value of inventory sold = $ (300 X 7) + (1,100 X 8) + (100 X 10)
= $ 2,100 + 8,800 + 1000
= $ 11,900
Month
Purchase
Sales
Balance
Quantity
Price ($)
Value ($)
Quantity
Price ($)
Quantity
Price ($)
Value ($)
February 4
700
7
4,900
-
-
700
7
4,900
May 11
-
-
-
400
7
300
7
2,100
July 14
1,100
8
8,800
-
-
300
1,100
7
8
10,900
September 19
3,000
10
30,000
-
-
300
1,100
3,000
7
8
10
40,900
*December 21
-
-
-
1500
300 X 7
1,100 X 8
100 X 10
2,900
10
29,000
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