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MGAB01H3 Chapter : Periodic Inventory System

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School
UTSC
Department
Financial Accounting
Course
MGAB01H3
Professor
Liang Chen

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Related Questions

Periodic Inventory by Three Methods; Cost of Merchandise SoldThe units of an item available for sale during the year were asfollows: Jan. 1 Inventory 30 units @ $120 Mar. 10 Purchase 70 units@ $132 Aug. 30 Purchase 30 units @ $140 Dec. 12 Purchase 70 units @$142 There are 40 units of the item in the physical inventory atDecember 31. The periodic inventory system is used. Determine theinventory cost and the cost of merchandise sold by three methods.Round interim calculations to one decimal and final answers to thenearest whole dollar.

The units of an item available for sale during the year were asfollows:

Jan 1 inventory 42 units at $60
Mar 10 purchase 58 units at $65
Aug 30 purchase 20 units at $68
Dec 12 Purchase 30 units at $70

There are 36 units of the item in the physical inventory atdecember 31. The periodic inventory system is used. Determine theinventory cost and the cost of merchandise sold by three methods,presenting your answers in the following form:

Inventory Method Merchandise Inventory Merchandise Sold


a. first-in, first out $ $
b. Last in first out
c. Average cost

John’s Specialty Store uses a periodic inventory system. Thefollowing are some inventory transactions for the month of May2016:

1. John's purchased merchandise onaccount for $5,200. Freight charges of $400 were paid in cash.
2.

John’s returned some of the merchandise purchased in (1). Thecost of the merchandise was $700 and John’s account was credited bythe supplier.
3. Merchandise costing $2,900 wassold for $5,400 in cash.

Required:

Prepare the necessary journal entries to record thesetransactions