ACCI-FINAL REVISION SPRING 2018-19 Journal Entries for Merchandising Operations On March 1, Tina Cycle Store had an inventory of 100 bicycles at a cost of $300 each. During the month of March the following transactions occurred. March. 4 Purchased bicycles at a cost of $4000 from Wim Cycle Company, terms 2/10, 1/30. Paid freight of &$120 cash Sold bicycles to Team UAE for $4800, terms 2/10, 1/30, cost of $3,000 Received credit from Wim Cycle Company for the return of defective bicycles for $600. Issued a credit memo to Team UAE for the return of defective bicycles for $900, cost of $300 14 Paid Wim Cycle Company full net amount. Inventory Cost Flow Method 30 62 13/9 20/10 25/11 50 150 100 150 units @ units @ units @ units @ units @ $1.00 S1.10 $1.20 $1.30 $1.40 - - - - $50 $55 $180 $130 $210 Units Purchased: 500 units 5625 A physical count of inventory on December 31 revealed that there were 280 units sold. Required: Calculate cost of good sold and ending inventory using Average method. FIFO and LIFO Classified Balance Sheet Given the following balances for Wild Kratt Company on December 31, 2017, prepare a classified balance sheet Accumulated depreciation Accounts payable Accounts receivable Capital stock Cash Fixed assets Interest payable Inventory Long-term note payable Prepaid rent Retained earnings Wages payable $23,980 12,320 10,780 6,600 8,140 98,340 2,640 14,960 30,800 2,750 51,590 7,040 Hough Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over a relevant range of 80,000 to 120,000 units produced and sold each year is given below: Units produced and sold 80,000 100.000 120,000 $240,000 320,000 $560,000 Total costs: Variable costs Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per unit Required: 1. Complete the schedule of the company's total and unit costs. 2. Assume that the company produces and sells 110,000 units during the year at the selling price of $6.50 per unit. Prepare a contribution format income statement for the year