Hempstead Company has the following data for 2019:
Item ____________________________ Units ______________ Cost
Inventory, 12/31/2018 ...................... 940 ..................... $10,340
Purchases ................................... 49,610 .......................4,510
Inventory, 12/31/2019 ...................... 770 ........................ 8,470
Required:
1. How many units were sold?
2. Using the cost of goods sold model, determine the cost of goods sold.
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225.
b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse.
c. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500.
d. On April 10, Mathis paid Reece the balance due?