Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assuming the perpetual inventory system is utilized; prepare the journal entries to record the following transaction for Fall Jewelers. Apr. 2 Fall received an invoice

image text in transcribed
image text in transcribed
Assuming the perpetual inventory system is utilized; prepare the journal entries to record the following transaction for Fall Jewelers. Apr. 2 Fall received an invoice for $25,000 from one of its merchandise suppliers. Terms were 2/10, 1/30 FOB shipping point Apr. 3 Fall paid transportation cost on the April 2nd purchase, $1,200. Apr. 4 Fall returned $3,500 of the merchandise billed on April 2nd because it was defective. Apr. 5 Fall sold merchandise on account to Charles Simpson Jewelers for $9,000. Terms were 3/15, 0/30 FOB destination. Fall's cost for this merchandise was $5,500. Apr. 8 Fall paid transportation cost on the April 5th sale, $800. Apr. 10 Fall paid the invoice dated April 2nd, less the return and the discount Apr. 15 Charles Simpson Jewelers returned $3,000 of the merchandise from the April 5th sale. Fall's cost for this merchandise was $1,750. Apr. 19 Fall received payment on the remaining amount due from Charles Simpson Jewelers, less the return and the discount Date Account Name Debit Credit At the beginning of year, Zumbach Industries has 150 units of a product with a unit cost of $320. During the year, Zumbach sells 340 units. The inventory records report the following transactions: Required: a Assume Zumbach uses the FIFO method. Compute the cost of goods sold for year and the cost of ending inventory balance for this product b. Assume Zumbach uses the LIFO method. Compute the cost of goods sold for the year and the cost of ending inventory balance for this product c. Assume Zumbach uses the weighted average cost method. Compute the cost of goods sold for the year and the cost of ending inventory balance for this product. Inventory Beginning Inventory Purchase #1 Purchase #2 Purchase #3 Units 150 150 70 30 Unit Cost Total Cost $320 $ 48,000 $352 $ 52,800 $380 $ 26,600 $420 $ 12,600 Inventory Method Cost of Goods Sold Cost of Ending Inventory First-In, First-out Last-in First-out Average Cost Show Your Calculations Below

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Buck's The Next Step Advanced Medical Coding And Auditing

Authors: Elsevier

1st Edition

0323762778, 978-0323762779

More Books

Students also viewed these Accounting questions