Question

Chat Can SOLUTIONS - M Wed BRIEF EXERCISE 6.5 Date Units Purchases Cost Total Cost of goods sold Units Cost Total Units Inventory balance Cost Total June 1 200 400 $25.00 $22.00 $5,000.00 $8,800.00 200 $25.00 $5,000.00 200 400 $25.00 $22.00 5,000.00 8.800.00 13,800.00 200 150 $25.00 $22.00 $5,000.00 $3,300.00 $8,300.00 $22.00 6,500.00 350 $20.00 $7,000.00 $22.00 $20.00 5,500.00 7.000.00 12,500.00 LO 2 BT AP Difficulty: M Time 20 min. AACSB. None CPA cp-1001 CM Reporting Page 1 of 13 8 O Words: 1,250 Type here to search

Answer 1

Answer: - (a) Perpetual- FIFO melhod :- Purchases Date cost of goods sold | Units per unit cost Units perunit cost I ending inventory / Units per Unit cost uoo $4 $1600 100 $ $400 may 1 300 $4 $1200 may 3 $5330 400 5330 100 1300 $4.10 4:10 may 4 / 1300 100 may 14 700 $4.40 $3080 1300 5330 3080 4:10 4040 4.10 4040 may 16 100 1900 $4 4.10 700 400 700 400 3690 1640 3080 400 4610 may 18 may 29 | 500 $4.75 $23.75 1640 700 700 1500 $6930 | 1200 4.40 $3080 4640 3080 4.75 2375 $5455 Total cost of goods sold = Ending inventory = =y= $6930 $5455

bi Journal Enlines Date Accounts Description Debit Credit may 3 $2100 Accounts Recervables $2100 To sales (300 x $7) $1200 cost of goods sold To machandise inuenlom (300x4) $1200 may 4 merchandise inventory $5330 $5330 To Accounts payable (1300x $410) тач 16 $7000 Accounts Receivables To saler (1000x $7) $ 7000 $4090 cost of goods sold To merchandise muenlony loco (toox $4+900x $4.10) $4090 © Gross poolt:- Sculeis $ 12100 $2100+ $ 7000 + (Uoox $7.501) ($6930) Tex-cost of goods sold = Gross profit - $ 5170