December 28 FOB destination purchases should not be accounted during the year because, In FOB destination contracts owenership of the goods transferred to buyer only when received by buyer in his godown.
Since goods received on January 4, should be recorded on January 4 of the following year.
Particulars | Units | Cost per unit | Total cost |
Beginning inventory | 20,000 | 9 | $ 1,80,000 |
Purchases | 1,00,000 | 12 | $ 12,00,000 |
Purchase discount (1200000*80%*2%) | $ -19,200 | ||
Freight charges (100000*$0.5) | $ 50,000 | ||
Purchase returns -Net discounted price (2000*9*98%) | -2,000 | $ -17,640 | |
Freight charges reversal(2000*$0.5) | $ -1,000 | ||
Total | 1,18,000 | $ 13,92,160 | |
Cost of goods sold (1391800/118000*95000) | -95,000 | $ 11,20,807 | |
Ending inventory | 23,000 | $ 2,71,353 |
I am having trouble trouble finding the ending inventory and cost of goods sold. Problem 8-4 (Algo) Various invento...
Johnson Corporation began the year with inventory of 16,000 units of its only product. The units cost $8 each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year: Purchased 80,000 additional units at a cost of $12 per unit. Terms of the purchases were 2/10, n/30, and 100% of the purchases were paid for within the 10-day discount period. The company uses the gross method to record purchase discounts. The...
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calculate the cost of goods available for sale, ending inventory, and cost of goods sold if Aircarf uses (a) FIFO, (b) LIFO, or (c) weighted average cost. Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July Units Unit Cost July 1 July 5 July 13...