First in first out | |||||
A | B | C | A x C | B x C | |
sold | End inventory | per unit | COGS | End inventory | |
From July 1 | 6 | 60 | 360 | ||
From July 8 | 5 | 67 | 335 | ||
From July 15 | 7 | 3 | 70 | 490 | 210 |
From July 26 | 5 | 85 | 425 | ||
Total | 1185 | 635 | |||
Last in first out | |||||
A | B | C | A x C | B x C | |
sold | End inventory | per unit | COGS | End inventory | |
From July 1 | 6 | 60 | 360 | ||
From July 8 | 3 | 2 | 67 | 201 | 134 |
From July 15 | 10 | 70 | 700 | ||
From July 26 | 5 | 85 | 425 | ||
Total | 1326 | 494 | |||
Avearge cost | COGS | End inventory | |||
inventory available for sale | 1820 | ||||
Divided by: units available for sale | 26 | ||||
Average cost | 70 | 18 units | 8 units | ||
Total | 1260 | 560 |
FIFO | LIFO | AVG COST | |
sales (18*125) | 2250 | 2250 | 2250 |
Less: COGS | 1185 | 1326 | 1260 |
Gross profit | 1065 | 924 | 990 |
Ending inventory | 635 | 494 | 560 |
FIFO method give Highest gross margin due to inflationary environment (due to Rising price) |
First in first out | ||||||
Date | units | per unit | cost | COGS | Inventory balance | |
Jul-01 | Beg . Inv | 6 | 60 | 360 | 360 | |
Jul-08 | purchase | 5 | 67 | 335 | 695 | |
Jul-10 | From Jul 1 | -6 | 60 | 360 | 335 | |
From Jul 8 | -1 | 67 | 67 | 268 | ||
Jul-15 | purchase | 10 | 70 | 700 | 968 | |
Jul-22 | From Jul 8 | -4 | 67 | 268 | 700 | |
From Jul 15 | -4 | 70 | 280 | 420 | ||
Total | 6 | 975 | 420 | |||
Last in first out | ||||||
date | units | per unit | cost | COGS | Inventory balance | |
Jul-01 | Beg. Inv | 6 | 60 | 360 | 360 | |
Jul-08 | purchase | 5 | 67 | 335 | 695 | |
Jul-10 | From Jul 8 | -5 | 67 | 335 | 360 | |
From Jul 1 | -2 | 60 | 120 | 240 | ||
Jul-15 | purchase | 10 | 70 | 700 | 940 | |
Jul-22 | From Jul 15 | -8 | 70 | 560 | 380 | |
Total | 6 | 1015 | 380 |
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,900. Freight charges of $750 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,050 and John's account was credited by the supplier. 3. Merchandise costing $3,250 was sold for $6,100 in cash. Required: Prepare the necessary journal entries to record these transactions....
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May. 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions....
Principles- Chapter 3.pdf
Principles- Chapter 3.pdf
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: 1. John's purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and John's account was credited by the supplier. 3. Merchandise costing $3,700 was sold for $7,000 in cash. Required: Prepare the necessary journal entries to record these...
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018 1. John's purchased merchandise on account for $5,300. Freight charges of $450 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $750 and John's account was credited by the supplier. 3. Merchandise costing $2,950 was sold for $5,500 in cash. Required: Prepare the necessary journal entries to record these...
Journal- Principles-Ch7.pdf
On November 30, Petrov Co. has $136,700 of accounts receivable and uses the perpetual inventory system. Dec. 4 Sold $9,850 of merchandise (that had cost $6,384) to customers on credit, terus n/30. 9 Sold $19, 138 of accounts receivable to Main Bank. Main charges a 4% factoring fee. 17 Received $5,418 cash from customers in payment on their accounts. 27 Borrowed $10,936 cash from Main Bank, pledging $14,217 of accounts receivable as security for the loan. (1) Prepare journal entries...
Journal-Principles-Ch 8.pdf
Hair Care Inc. is a wholesaler of hair supplies. Hair Care uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $28, 497) $50,900 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $330) c. Sold merchandise (costing $4,600) to a customer, on account with terms 3/10, n/30 10,000 d. Collected half of the balance owed by the...