Question

Boston Cycles started October with 12 bicycles that cost 42 each on October 16, Boston bought 40 bicycles at 68 each. On October 31, Boston sold bicycles for S100 each Requirements 1. Prepare Boston Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that Boston sold 10 bicycles that cost 542 each and 24 bicycles that cost $50 each 2. Joumalize the October 18 purchase of merchandise inventory on account and the October 31 sale of merchandise invertory on account Requirement 1. Prepare Boston Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that Boston old 10 bicycles that cost $42each and 24 bicycles that cost $68 och Start by entering the beginning inventory balances. Enter the transactions in chronological order i ng new invertory on hand balance reach action. Once of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand the end of the period. Enter the oldest inventory layerstret. Abbreviatione QTY O y , Toto Boston Cycles Purchases Date QTY Unit Cost Tot. Cost loa! Cost of Goods Sold QTY Unit Cost Tot. Cost Inventory on Hand QTY Un Cost Tol Cost Enter any number in the editfelds and then click Check Answer Clear All Check Answer 6 mining

Answer 1

1.

Date	Purchases			Cost of Goods Sold			Inventory on Hand
	QTY	Unit Cost	Tot. Cost	QTY	Unit Cost	Tot. Cost	QTY	Unit Cost	Tot. Cost
Oct. 1							12	42	504
Oct. 16	40	68	2720				12	42	504
							40	68	2720
Oct. 31				10	42	420	2	42	84
				24	68	1632	16	68	1088
Total	40		2720	34		2052	18		1172

2.

Date	General Journal	Debit	Credit
Oct. 16	Merchandise inventory (40 x $68)	2720
	Accounts payable		2720
	(To record purchase of merchandise inventory on account)
Oct. 31	Accounts receivable	3400
	Sales revenue (34 x $100)		3400
	(To record sales on account)
Oct. 31	Cost of goods sold	2052
	Merchandise inventory		2052
	(To record the cost of goods sold)