Assignment 2

Question (LO1-4)

On January 22, 2015, Dobbins Supply Inc., Sold 700 toner cartrdges to Foster Office Fitters.

Immediately prior to this sale, Dobbins supply perpetual inventory records for these units included the following costs:

Purchase date Quantity Unit Cost Total Cost

Dec. 12, 2014 400 20 8,000

Jan. 16, 2015 1,200 22 26,400

Total on hand 1,600 34,400

Instructions

a. Prepare a separate journal entry to record the cost of goods sold relating to the Jan 22 sale of 700 toner

assuming that the company uses: (50 points in total, 12.5 points each)

1. Specific identification (300 of the units sold had been purchased on Dec 12, and 400 had been purchased

on Jan 16).

2. Average cost

3. Last-in-First-out (LIFO)

4. First-in-First-out (FIFO)

b. Complete the subsidary ledger record for the toner cartridges using each of the four valuation methods listed

above. Use the formats for inventory subsidiary records illustrated on pages 345-347 of your book.