Chapter 6 Homework (2) - Goox edit was made seconds ago by anonymous BIU A IEE SEX .. 2 WS Chapter 6 - Homework Assignment Problem One: During the year. Masks R Us Corporation has the following inventory transactions Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 50 $42 $ 2.100 Apr. 7 Purchase 130 44 5,720 Jul 16Purchase 200 47 9.400 Oct. 6 Purchase 110 48 51280 190 $22500 For the entire year the company sells 440 units of inventory for $60 each Required: 1. Using FIFO, calculate () ending inventory. (b) cost of goods sold, (e) sales revenue, and (d) gross profit a) Ending Inventory b) CGS c] Sales Revenue d) Gross Profit 2. Using LIFO, calculate (a) ending inventory. (b) cost of goods sold (e) sales revenue and (d) gross profit a) Ending Inventory by CGS Sales Revenue d Gross Profit 1 And Chapter 6 Homework (2) - Goo Sit was made seconds ago by anonymous BIUA IE E--EX 2 4 5 6 3. Using weighted average cost, calculate (a) ending inventory, (b) cost of goods sold, (c) sales revenue and (d) gross profit a) Ending Inventory b) CGS c) Sales Revenue 1 d) Gross Profit 4. Determine which method will result in higher profitability when inventory costs are rising Problem Two: JC Bikes has the following transactions during May May Purchases bikes on account from Bikers R Us Wholesale for $3.300 terms 110, n 30 2 May Pays cash for freight costs of $200 on bikes purchased from BRU 3 May Retums bikes with a cost of $100 to BRU because part of the order is incorrect 3 Pays the full amount due to BRU 10 May Sells all Bikes purchased on May 2 (less those retumed on May 33 for $4,000 on 30 account Required: May Thapter 6 Homework (2) - Goog was made seconds ago by anonymous BIVA ODE EEEEEEEE.. 3 5 6 Required: Record the transactions of JC Bikes, assuming the company uses a perpetual inventory system Date Account Debit Credit 2. Assume that payment to BRL is made on May instead of May to Record this payment Date Account Debit Credit = Chapter 6 Homework (2) - Goo BilqQdb GinkDQDw/edit edit was made seconds ago by anonymous BIVA IEEE-SEX-2- 1 2 2. Assume that payment to BRU is made on May 24 instead of May 10 Record this payment. Date Account Debit Credit