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3. Beginning inventory, purchases, andsales for Product - Weld TM are as follows:

Sep. 1

Beginning Inventory

24 units

@

$15

Sep. 5

Sale

17 units

Sep. 17

Purchase

10 units

@

$20

Sep. 30

Sale

8 units


Assuming a perpetual inventory system and the first-in, first-outmethod, determine (a) the cost of the merchandise sold for theSeptember 30 sale and (b) the inventory on September 30.

4. Beginning inventory, purchases, andsales for Product - Weld TM are as follows:

Sep. 1

Beginning Inventory

24 units

@

$10

Sep. 5

Sale

17 units

Sep. 17

Purchase

10 units

@

$15

Sep. 30

Sale

8 units


Assuming a perpetual inventory system and the last-in, first-outmethod, determine (a) the cost of the merchandise sold for theSeptember 30 sale and (b) the inventory on September 30.

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 36 units @ $45 10 Sale 30 units 15 Purchase 17 units @ $47 20 Sale 12 units 24 Sale 8 units 30 Purchase 40 units @ $49 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. 1 $ $ Apr. 10 $ $ Apr. 15 $ $ Apr. 20 Apr. 24 Apr. 30 Apr. 30 Balances $ $ b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for portable DVD players are as follows:

Apr. 1 Inventory 36 units @ $45
10 Sale 30 units
15 Purchase 17 units @ $47
20 Sale 12 units
24 Sale 8 units
30 Purchase 40 units @ $49

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.

a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Cost of the Merchandise Sold Schedule
First-in, First-out Method
Portable DVD Players
Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost
Apr. 1 $ $
Apr. 10 $ $
Apr. 15 $ $
Apr. 20
Apr. 24
Apr. 30
Apr. 30 Balances $ $

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

Step 4: Post entries to t accounts.

Use the t accounts page in your workbook to post all journalentries to the appropriate ledger account and calculate accountbalances as of September 30th.

Date Accounts Debit Credit
1-Jul Cash 15,000.00
Common Stock 15,000.00
Contributed cash for common stock
1-Jul Baking Supplies 8,500.00
1-Jul Accounting Payable ( Baking Supplies) 8,500.00
3-Jul Cash 10,000.00
3-Jul Account Recieveable 10,000.00
7-Jul Rent Expense 3,000.00
7-Jul Cash 3,000.00
10-Jul Buisness License 375.00
10-Jul Cash 375.00
11-Jul Cash 275.00
11-Jul Misc. Expense 275.00
13-Jul Baking Equiment 5,000.00
13-Jul Common Stock 5,000.00
13-Jul Advertising expense 200.00
13-Jul Cash 200.00
14-Jul Misc. Supplies 300.00
14-Jul Cash 300.00
30-Jul Telephone Expense 45.00
30-Jul Account Recieveable 45.00
31-Jul Insurance Policy 1,200.00
31-Jul Cash 1,200.00
31-Jul Accure 120.00
31-Jul Wage payable 120.00


Date Accounts Debit Credit
5-Aug Wage Expense 120.00
5-Aug Wage Payable 120.00
8-Aug Cash 3,200.00
8-Aug Account receivable 3,200.00
10-Aug Telephone Expense 45.00
10-Aug Cash 45.00
15-Aug Baking supplies 5,000.00
15-Aug Account payable 5,000.00
15-Aug Wage Expense 480.00
15-Aug Wage Payable 480.00
15-Aug Rent Expense 1,500.00
15-Aug Cash 1,500.00
18-Aug Cash 1,000.00
18-Aug Account Receivable 1,000.00
20-Aug Baking supplies account payable 8,500.00
20-Aug Cash 8,500.00
20-Aug Accrue Wage 420.00
20-Aug Cash 420.00
22-Aug Misc supplies 300.00
22-Aug Cash 300.00
31-Aug Telephone Expense 45.00
31-Aug Cash 45.00
Bakery sale total $20,000 of this total on accountreceivable
Cash 12,500.00
Account Receivable 7,500.00


1-Sep Dividends 3,000.00
1-Sep Cash 3,000.00
5-Sep Wage Expense
5-Sep Cash
7-Sep Inventory 60.00
7-Sep Cash 60.00
8-Sep Cash 4,000.00
8-Sep Account receiveable 4,000.00
10-Sep Telephone Expense 45.00
10-Sep Cash 45.00
11-Sep Baking Supplies 7,000.00
11-Sep Account Payable 7,000.00
13-Sep Supplies vendor account payable 5,000.00
13-Sep Cash 5,000.00
15-Sep Wage Expense
15-Sep Wage Payable
15-Sep Rent Expense 1,500.00
15-Sep Cash 1,500.00
15-Sep Merchandise Sales Revenue 68.00
15-Sep Cost of goods sold 48.00
20-Sep Wage Expense
20-Sep Wage Payable
24-Sep Merchandise Sales Revenue 153.00
24-Sep Cost of goods sold 109.60
30-Sep Wages Expense
30-Sep Wage Payable
30-Sep Mechandise Inventory 109.60
Cash 19,000.00
Account Receivable 6,000.00
Bakery Sales Revenue 25,000.00

3. Beginning inventory, purchases andsales data for widgets are as follows:

Apr 3

Inventory

15 units

@

$30

11

Purchase

12 units

@

$27

14

Sale

18 units

21

Purchase

7 units

@

$25

25

Sale

10 units


Complete the inventory cost card assuming the business maintains aperpetual inventory system and calculates thecost of merchandise sold and ending inventory usingFIFO.


Purchases

Cost of
Merchandise Sold


Inventory

Date

Qty

Unit Cost

Total Cost

Qty

Unit Cost

Total Cost

Qty

Unit Cost

Total Cost

Balances

4. Complete the chart using the LIFO andFIFO costing methods, assuming a period of increasingcosts:

Highest Amount

Lowest Amount

Cost of merchandise sold

Gross Profit

Net Income

Ending Merchandise Inventory

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