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Boston Beaches, Inc., carries a line of titanium cameras. Boston Beaches, Inc., uses the LIFO method and a perpetual inventory system. The sales price
Boston Beaches, Inc., carries a line of titanium cameras. Boston Beaches, Inc., uses the LIFO method and a perpetual inventory system. The sales price of each camera is $160. Company records indicate the following activity for cameras for the month of July: (Click the icon to view the records.) Read the requirements. Requirement 1. Prepare a perpetual inventory record for the cameras on the LIFO basis to determine the cost of ending inventory and cost of goods sold for the month. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (For cost of goods sold, enter the first layer out under LIFO costing first. For inventory on hand, enter the oldest inventory layer first.) LIFO: Jul Date Total Purchases Cost of goods sold Inventory on hand Unit Total Unit Total Unit Total Qty Cost Cost Qty Cost Cost Qty Cost Cost 1 7 11 19 28 Requirement 2. Journalize the inventory transactions for Boston Beaches, Inc., using the perpetual LIFO method. Assume all purchases and sales are on account. (Record debits first, then credits. Exclude explanations from any journal entries.) July 7: Purchased 20 cameras for $95 per camera. Date Jul 7 Journal Entry Accounts Debit Credit July 11: Sold 22 cameras. Begin by journalizing the revenue from the sale of cameras on account. (Do not journalize the cost related to the sale yet. We will do this in the next journal entry.) Date Jul 11 Journal Entry Accounts Debit Credit July 11: Sold 22 cameras. Now journalize the cost of the cameras sold. Jul Date 11 Journal Entry Accounts Debit Credit July 19: Purchased 16 cameras for $99 per camera. Date Jul 19 Journal Entry Accounts Debit Credit July 28: Sold 15 cameras. Begin by journalizing the revenue from the sale of cameras on account. (Do not journalize the cost related to the sale yet. We will do this in the next journal entry.) Date Journal Entry Accounts Debit Credit Jul 28 July 28: Sold 15 cameras. Now journalize the cost of the cameras sold. Jul Date 28 Journal Entry Accounts Debit Credit Data table Date Item Quantity Unit Cost Jul 1 Balance 10 69 $ 94 7 Purchase 20 69 $ 95 11 Sale 22 19 Purchase 16 69 $ 99 99 28 Sale 15 Requirements 1. Prepare a perpetual inventory record for the cameras on the LIFO basis to determine the cost of ending inventory and cost of goods sold for the month. 2. Journalize the inventory transactions for Boston Beaches, Inc., using the perpetual LIFO method. Assume all purchases and sales are on account.
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