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6/7 15 Lammond Corp uses the perpetual inventory method with the following information available: Units Unit Cost Total Cost Jan. 1 Beginning inventory $4.00 $

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6/7 15 Lammond Corp uses the perpetual inventory method with the following information available: Units Unit Cost Total Cost Jan. 1 Beginning inventory $4.00 $ 60 20 Purchase 60 4.40 264 21 Sale (sold for $14 each) 65 July 25 Purchase 30 4.20 126 Oct. 20 Purchase 45 4.80 216 Nov. 15 Sale (sold for $15 each) 75 Instructions: (Note: Blank Working paper is attached on the following page) You MUST show ALL CALCULATIONS in order to obtain full marks. No calculations = ZERO marks awarded. Answer the following independent and unrelated questions for Lammond's transactions. (a) What is the value of Cost of Goods Available for sale at the end of November $ (b) How many units were available for sale during the year? (c) Assume that the company uses the FIFO cost formula. The cost of goods sold for the Jan 21 sale was How much gross profit was earned on this sale? $ Instructions: (Note: Blank Working paper is attached on the following page) You MUST show ALL CALCULATIONS in order to obtain full marks. No calculations = ZERO marks awarded. Answer the following independent and unrelated questions for Larnmond's transactions. (a) What is the value of Cost of Goods Available for sale at the end of November. $ (b) How many units were available for sale during the year? (c) Assume that the company uses the FIFO cost formula. The cost of goods sold for the Jan 21 sale was - How much gross profit was earned on this sale? $ (d) Assume that the company uses the FIFO cost formula. The value of the ending inventory after the October 20 purchase is $ (e) Assume that the company uses the average cost formula. The cost of goods sold for the Jan 21 sale was $ _. Use two decimal points only to calculate your average unit cost. 1. Record the Journal entry for the Jan 21" sale under assumption (C) above (e) Assume that the company uses the average cost formula. The cost of goods sold for the Jan 21 sale was $ Use two decimal points only to calculate your average unit cost. 1. Record the Journal entry for the Jan 21" sale under assumption (C) above Date Account title and explanation Dr (f) Assume that the company uses the perpetual average cost formula. The value of the inventory after the November 15 sale was $ Use two decimal spots to calculate your average unit cost. (g) Assuming the company uses the PERIODIC system, what would year end Inventory be under: 2. AVERAGE costing method $ Use this space for your calculations if needed. Clearly identify the question reference a

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