There is difference in recording the entries in both methods. Perpetual method record COGS, when the sales occurs where as periodic records it at the end of the year. The same difference is there in the below entries:
Part a Perpetual inventory system
Date | Accounts Title | Dr | Cr |
14-Jan | Trade Receivable | 1000 | |
Sales (40*25) | 1000 | ||
14-jan | Cost of sales[25*25] | 625 | |
Inventory | 625 | ||
9-Apr | Inventory (25*$15) | 375 | |
Trade Payable | 375 | ||
2-Sep | Trade Receivable | 2250 | |
Sales (50*45) | 2250 | ||
2 sep | cost of sales | 1250 | |
Inventory | 1250 | ||
Dec 31 | No journal entry | ||
Part b Period inventory system
Date | Accounts Title | Dr | Cr |
14-Jan | Trade Receivable | 1000 | |
Sales (40*25) | 1000 | ||
9-Apr | Purchases (25*$15) | 375 | |
Trade Payable | 375 | ||
2-Sep | Trade Receivable | 2250 | |
Sales (50*45) | 2250 | ||
Dec 31 | Cost of sales | 2875 | |
Inventory | 2875 | ||
31-Dec | Inventory [40*25] | 1000 | |
Cost of sales | 1000 | ||
E8-7 Recording Purchases and Sales Using a Perpetual and Periodic Inventory System Demski Company reported beginning...
Montoure Company uses a perpetual inventory system. It entered
into the following calendar-year purchases and sales
transactions
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
620
units
@ $45 per unit
Feb.
10
Purchase
310
units
@ $42 per unit
Mar.
13
Purchase
120
units
@ $30 per unit
Mar.
15
Sales
770
units
@ $85 per unit
Aug.
21
Purchase
190
units
@ $50 per unit
Sept.
5
Purchase
520
units
@ $48...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $40 per unit Feb. 10 Purchase 400 units @ $37 per unit Mar. 13 Purchase 190 units @ $15 per unit Mar. 15 Sales 805 units @ $70 per unit Aug. 21 Purchase 190 units @ $45 per unit Sept. 5 Purchase 550 units @ $43...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units $40 per unit Feb. 10 Purchase 400 units@ $37 per unit Mar. 13 Purchase 190 units@ $15 per unit Mar. 15 Sales 805 units@ $70 per unit Aug. 21 Purchase 190 units @ $45 per unit Sept. 5 Purchase 550 units @ $43 per unit Sept. 10...
Montoure Company uses a perpetual inventory system. It entered
into the following calendar-year purchases and sales
transactions
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
600
units
@ $35 per unit
Feb.
10
Purchase
300
units
@ $32 per unit
Mar.
13
Purchase
150
units
@ $20 per unit
Mar.
15
Sales
725
units
@ $80 per unit
Aug.
21
Purchase
190
units
@ $40 per unit
Sept.
5
Purchase
540
units
@ $37...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $40 per unit Feb. 10 Purchase 400 units @ $37 per unit Mar. 13 Purchase 190 units @ $15 per unit Mar. 15 Sales 805 units @ $70 per unit Aug. 21 Purchase 190 units @ $45 per unit Sept. 5 Purchase 550 units @ $43...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Units Sold at Retail Units Acquired at Cost 620 units@ $45 per unit 310 units @ $42 per unit 120 units @ $30 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 770 units@ $85 per unit 190 units @ $50 per unit 520 units...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Units Sold at Retail Units Acquired at Cost 660 units @ $35 per unit 330 units @ $32 per unit 110 units @ $20 per unit Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 760 units @ $75 per unit 180 units @ $40 per unit 570...
Frigid Supplies reported beginning inventory of 230 units, for a total cost of $2,300. The company had the following transactions during the month:Jan. 3 Sold 30 units on account at a selling price of $20 per unit. 6 Bought 40 units on account at a cost of $10 per unit. 16 Sold 40 units on account at a selling price of $20 per unit. 19 Sold 30 units on account at a selling price of $25 per unit. 26 Bought...
Why Moms A Option #1: Inventory Costing & Periodic and Perpetual Inventory Systems Jordan Company is a manufacturing firm. Presented below is information concerning one of its products: 1/1 Beginning inventory 4,190 $20 2/12 Purchase 4,630 $25 3/2 Sale 3,640 $38 4/18 Purchase 5,950 $28 5/31 Sale 5,180 $40 Part A Use the ACT350_CTTemplate_Mod5_option1.xlsx file (in the module folder) to compute the cost of goods sold under the following situations: 1. Periodic system, FIFO cost flow 2. Perpetual system, FIFO...