Ch 6 Q 3

At the beginning of November, Yoshi Incorporated's inventory consists of 52 units with a cost per unit of $96. The following transactions occur during the month of November. Novenber 2 Purchase 80 units of inventory on account from Toad Incorporated for $100 per unit, terms 1/10,n/30. Novenber 3 Pay cash for freight charges related to the November 2 purchase, $320. Novenber 9 Return 16 defective units from the November 2 purchase and receive credit. Novenber "11 Pay Toad Incorporated in full. Novenber 16 Sell 100 units of inventory to customers on account, $13,200. (Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.) Novenber 20 Receive full payment from customers related to the sale on November 16. Novenber 21 Purchase 62 units of inventory from Toad Incorporated for $106 per unit, terms 3/10,n/30. novenber 24Sell70 units of inventory to customers for cash, $8,300. (Note: For calculatina the cost of inventorv sold. ianore the possible purchase discount on November 20.) Required: 1. Assuming that Yoshi Incorporated uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. 2. Suppose by the end of November that the remaining inventory is estimated to have a net realizable value per unit of $82, record any necessary adjustment for the lower of cost and net realizable value. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjusting entry for lower of cost and net realizable value. Journal entry worksheet Record purchase of 80 units of inventory on account from Toad Incorporated for $100 per unit, terms 1/10,n/30. Note: Enter debits before credits. Journal entry worksheet Record any necessary adjusting entry for lower of cost and net realizable value. Note: Enter debits before credits. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjusting entry for lower of cost and net realizable value