Assignment #$7$

Example #$2$; Inventory valuation $-$ gross method

Kimi Corp. reported the following transactions with regard to merchandise inventory during the second quarter of $20x1,$ April $1$ to June $30.$

Shipped $$5,000$ of its merchandise to Lexi Inc. Lexi has agreed to sell this inventory on the behalf of Kimi Corp.

Kimi purchased $108,000$ units priced at $$23$ per unit under invoice tems $2115,\frac{n}{40}.$ The goods were shipped F$.$O$.$B destination and arrived at Kimi's docks on April $15.$ Kimi did not pay in the discount window and returned $750$ units on June $19.$

Kimi purchased $89,100$ units priced at $$27$ per unit under terms $215,\frac{n}{30}.$ The goods were shipped on June $20,$ F$,$O$.$ B destination, and were still in transit on June $30.$ Kimi paid in the discount window on July $3$ when the merchandise arrived.

Kimi purchased $40,500$ units priced at $$25$ per unit under tems $310,$ n$/30.$ The goods were shipped FOB shipping and were still in transit on June $30.$ Shipping fees of $$1\mathrm{.}50$ per unit were assessed as Kimi's responsibility. Kimi paid within the discourt window:

Provide journal entries $($where necessary$)$ assuming Kimi uses the gross method for discount accounting and a periodic system for recording inventory transactions.

Provide any changes that would occur if a perpetual system of inventory was used.

Assume the company began with $$73,000$ of beginning inventory and determined, by physical count, that it had $$53\mathrm{.}025$ of inventory at the end of the month $($assume this includes all inventory the company has leal title to even when it is not on premises. Provide the entry to record cost of goods sold assuning a periodic system is used.

Example #$4$: Cost flow methods. Purchase Discounts, Returns and Freight$-$in

Colt McCoy Co$.$ started had the following transactions related to inventory in December.

The price per unit of each purchase including discounts and freight is:

December $5$:$$12**0\mathrm{.}98+0\mathrm{.}30=$$$12\mathrm{.}06$

December $20$:$$10**0\mathrm{.}97+0\mathrm{.}30=$$$10$

December $26$: $$13+0\mathrm{.}30=$$$13\mathrm{.}30$

December $28$: $$12+0\mathrm{.}30=$$$12\mathrm{.}30$

Colt uses the gross method for recording discounts and purchases all inventory through accounts payable. Colt paid within the discount window on all purchases. Freight is paid in cash and receives no discount. All returned units receive reimbursement on any freight.

Provide joumal entries to record the purchase of units on December $5$ th using both a perperual and periodic method. Assume retums are made prior to payment.

What is ending inventory using a LIFO perpetual cost method? Provide and date the joumal entries to record all COGS under this method.

What is ending imwentory weing wheighted ayerage perpetul? Proride and date the joumal entries to

What is ending inventory using FIFO periodic? Provide and date the joumal entry to record all COGS under this method.QQuestion$3$