Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B. The beginning inventory amount D. Equal to the cost of goods purchased 31. A company that uses a perpetual inventory syste beginning inventory. a

image text in transcribed
image text in transcribed
image text in transcribed
B. The beginning inventory amount D. Equal to the cost of goods purchased 31. A company that uses a perpetual inventory syste beginning inventory. a perpetual inventory system made the following cash purchases and sales. There was no January 1: Purchased 100 units at $10 per unit. February 5: Purchased 60 units at $12 per unit. March 16: Sold 40 Units for $16 per unit Prepare the general journal entries to record the March 16 sale using the LIFO inventory valuation method. Mar 16 Cash ($16 x 40). Sales Mar. 16 Cost of goods sold ($12 x 40). Merchandise inventory 640 640 480 480 *32. A company markets a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: January 1: Beginning balance of 18 units at $13 each. January 12: Purchased 30 units at $14 each. January 19: Sold 24 units at $30 selling price each. January 20: Purchased 24 units at $17 each. January 27: Sold 27 units at $30 selling price each Required: Using the LIFO method of valuation, determine the cost of sales and value of the ending inventory. www eta im should pay off 14.Using the following table, enter the relevant categories of the given accounts, based on the example given. No. Account Title Classification Financial Statement in Normal Balance which it appears Ex Accounts receivable Current asset Balance sheet Debit 1 Accumulated Depreciation - Bldg. Fixed asset (contra) Balance sheet Credit Accounts payable Current liability Balance sheet Credit 3 Dividend income received Other income Income statement Credit 4 Dividends paid Retained earning Retained earnings statement Debit Interest charge on note payable Expense Income statement Debit Prepaid rent Current asset Balance sheet Debit Sales tax collected from sales Current liability Balance sheet Credit Unearned revenue Current liability Balance sheet Credit 2 *32. A company markets a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: January 1: Beginning balance of 18 units at $13 each. January 12: Purchased 30 units at $14 each. January 19: Sold 24 units at $30 selling price each. January 20: Purchased 24 units at $17 each. January 27: Sold 27 units at $30 selling price each. Required: Using the LIFO method of valuation, determine the cost of sales and value of the ending inventory

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

Students also viewed these Accounting questions