Question
1(a):Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on periodic system. On January 1,
1(a):Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 325 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:
| Date | Activity | |
| a. | Jan. 3 | Purchased on account 350 widgets for $11 each. |
| b. | Jan. 5 | Sold on account 425 widgets for $30 each. |
| c. | Jan. 10 | Purchased on account 600 widgets for $12 each. |
| d. | Jan. 12 | Returned 25 widgets received from Jan. 10 purchase. |
| e. | Jan. 13 | Paid for the purchases made on Jan. 3. |
| f. | Jan. 21 | Sold on account 550 widgets for $30 each. |
| g. | Jan. 25 | Received payment for the sale made on Jan. 5. |
| h. | Jan. 26 | Paid for the purchases made on Jan. 10. |
| i. | Jan. 31 | Received payment for the sale made on Jan. 21. |
Using the FIFO method, determine the dollar values following for the month of January:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
1(b):Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:
| Date | Activity | |
| a. | Jan. 3 | Purchased on account 350 widgets for $11 each. |
| b. | Jan. 5 | Sold on account 400 widgets for $30 each. |
| c. | Jan. 10 | Purchased on account 625 widgets for $12 each. |
| d. | Jan. 12 | Returned 50 widgets received from Jan. 10 purchase. |
| e. | Jan. 13 | Paid for the purchases made on Jan. 3. |
| f. | Jan. 21 | Sold on account 550 widgets for $30 each. |
| g. | Jan. 25 | Received payment for the sale made on Jan. 5. |
| h. | Jan. 26 | Paid for the purchases made on Jan. 10. |
| i. | Jan. 31 | Received payment for the sale made on Jan. 21. |
Using the Weighted Average method, determine the dollar values following for the month of January: (Enter only whole dollar values.)
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
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