ZuoTi.Pro
Question

2. During January, Lexington Company used a perpetual inventory system and had beginning inventory, purchases, and sales as follows: Units Cost Beginning inventory Jan 5 purchase 10 sale Per Unit $24 $26 1000 S20 400 600 700 15 purchase 25 sale 500 1. Calculate the dollar value of ending inventory and cost of goods sold using: a. FIFO b. Moving weighted average Prepare the journal entries to record the transactions. price is $40 per unit. Calculate the Gross Profit using your calculations for part 1 & 2. Assume that the selling 2. 3. Page 1

Solve the Number 1, 2, and 3 questions.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

FIFO MOVING AVERAGE METHOD Cost per unit Total Cost Cost per unit Total Cost 1st JanBeginning Invento 1000 20000 1st Jan Beginning Invento 1000 Sth Jan Purchase 400 9600 5th Jan Purchase 400 9600 10th Jan Sale 600 12000 10th Jan Sale 21.14 12685.71 (1000x20+ 400x24)/1400 15th Jan Purchase 700 18200 15th Jan Purchase 700 18200 25th Jan Sale 500 20.8 10400 25th Jan Sale 500 23.87 11933.33333 400x20 100x24 400x20400x24700x26)/1500 31st Jan Closing Invento 1000 25.4 25400 31st Jan Closing Inve 1000 25.4 25400 (300x24+700x26) (300x24 700x26)/1000

As per FIFO Purchase 05-Jan Stock 9600 Creditor Sales Cr 9600 10-Jan Cost of goods sold Dr Cr Stock 10-Jan Debtor 24000 Sales Cr 24000 Purchase 15-Jan Stock 18200 Creditor Cr 18200 Sales 25-Jan Cost of goods sold Dr Cr 10400 Stock 10400 25-Jan Debtor 20000 Sales Cr.

As per Moving Average Purchase 05-Jan Stock Dr Cr. 9600 Creditor Sales 9600 10-Jan Cost of goods sold Dr 12685.71 Stock 12685.71429 10-Jan Debtor Dr Cr. 24000 Sales 24000 Purchase 15-Jan Stock Dr Cr. 18200 Creditor Sales 25-Jan Cost of goods sold Dr 11933.33333 Stock 11933.33333 25-Jan Debtor Dr Cr. Sales

Calculation of gross profit as per FIFO Opening inventory Purchase Gross Profit 20000 Sales 27800 Closing inventory 21600 25400 Calculation of gross profit as per Moving average Opening inventory Purchase Gross Profit 20000 Sales 27800 Closing inventory 21600 44000 25400

I hope this clarifies your question. Pls rate and comment in case of any query.

0 0
Add a comment
Know the answer?
Add Answer to:
Solve the Number 1, 2, and 3 questions. 2. During January, Lexington Company used a perpetual...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales...

    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...

  • 1 Problem 6-3A Perpetual: Alternative cost flows P1 Montoure Company uses a perpetual inventory system. It...

    1 Problem 6-3A Perpetual: Alternative cost flows P1 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.) Date Activities Units Acquired at Cost Units Sold at Retail Jan. Beginning inventory 600 units o $45.00 per...

  • Montoure Company uses a perpetual Inventory system. It entered into the following calendar year purchases and...

    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 600 units $45 per unit 400 units $42 per unit 200 units $27 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 800 units $75 per unit 100 units $50 per unit 500 units @ $46...

  • Why Moms A Option #1: Inventory Costing & Periodic and Perpetual Inventory Systems Jordan Company is...

    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...

  • problem 5-3A perpetual: alternative cost flows LO P Problem 5-3A Perpetual: Alternative cost flows LO P1...

    problem 5-3A perpetual: alternative cost flows LO P Problem 5-3A Perpetual: Alternative cost flows LO P1 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 600 units $600 per unit 400 units $57 per unit 120 units $42 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...

  • Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales...

    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...

  • Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for Meta-B1 are as follows: July...

    Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for Meta-B1 are as follows: July 1 Inventory 100 units at $400 12 Sale 70 units 23 Purchase 120 units at $450 26 Sale 110 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the July 23 purchase. $ per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise...

  • [The following information applies to the questions displayed below.) Warnerwoods Company uses a perpetual inventory system....

    [The following information applies to the questions displayed below.) Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March Units Sold at Retail Units Acquired at Cost 240 units e$53.80 per unit 295 units e $58.80 per unit. 400 units e $88.80 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 155 units & $63.80 per unit...

  • Montoure Company uses a perpetual Inventory system. It entered into the following calendar-year purchases and sales...

    Montoure Company uses a perpetual Inventory system. It entered into the following calendar-year purchases and sales transactions Units sold at Retail Unite Aequired at Cost 680 units 540 per unit 320 units @ $35 per unit 100 units $23 per unit Date Activities Jan. Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 720 unitse $75 per unit 130 units 490 units $45 per unit $41 per unit...

  • Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...

    Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Units Sold at Retail Units Acquired at Cost 200 units @ $53.00 per unit 275 units@ $58.00 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 360 units @ $88.00 per unit 135 units @ $63.00 per unit 250 units @ $65.00 per unit 230 units @...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT