Question
1. The following purchases and sales took place at ODonnell Glassware. Jun 2 Purchased 25 cases of glasses on account for $73 per case (terms
1. The following purchases and sales took place at O’Donnell Glassware.
Jun 2 | Purchased 25 cases of glasses on account for $73 per case (terms 2/10, n/30) |
Jun 5 | Purchased 45 cases of glasses on account for $82 per case (terms 3,15, n/30) |
Jun 10 | Sold 34 cases of glasses on account for $127 per case (terms n/30) |
Calculate the value of inventory after the sale on June 10 using FIFO valuation and a perpetual inventory system.
2. The following purchases and sales took place at O’Donnell Glassware.
Jun 2 | Purchased 23 cases of glasses on account for $75 per case (terms 2/10, n/30) |
Jun 5 | Purchased 41 cases of glasses on account for $82 per case (terms 3,15, n/30) |
Jun 10 | Sold 33 cases of glasses on account for $131 per case (terms n/30) |
Find the cost of goods sold for the June 10 sale using weighted-average cost valuation and a perpetual inventory system.
3. The following purchases and sales took place at O’Donnell Glassware.
Jun 2 | Purchased 25 cases of glasses on account for $75 per case (terms 2/10, n/30) |
Jun 5 | Purchased 46 cases of glasses on account for $84 per case (terms 3,15, n/30) |
Jun 10 | Sold 33 cases of glasses on account for $129 per case (terms n/30) |
Calculate the value of ending inventory using specific identification valuation and a perpetual inventory system. Assume that 20 of the cases sold came from the June 2 purchase and the other 13 from the June 5 purchase
Step by Step Solution
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Step: 1
Using FIFO valuation method the cost of goods sold for the sale on June 10 is calculated as follows ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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