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In red are the answers, but I dont know how they got the numbers starting at where they got the 610 from that 29,707 is
In red are the answers, but I dont know how they got the numbers starting at where they got the 610 from that 29,707 is divided from. Please tell me how they got these answers.
1 ... 1 .....1....2...1...3.....4......5.........7.., 1 3. Recovery Corp. provides you the following data regarding inventory purchases and sales for the month of June. Purchase Freight-in, Units purchased Discounts, net of Purchase net of Date @ gross price Purchases returns Returns returns Beginning 220 @ $50 11,000 Purchase 6/2 650 @ $50 $32.500 $1,220 $2,000 $427 29,707 Purchase 6/15 200 @ $55 11.000 297 1.100 144 9,747 6/17 Sold 700 units Purchase 6/28 475 @ $62 29,450 0 0 1,550 360 28,260 6/30 Sold 400 units Recovery uses the gross method of accounting for purchase discounts. Any returned items are reimbursed freight charges. Freight is paid in cash. 1. Provide dated journal entry(ies) to record cost of goods sold if the company uses LIFO perpetual method of accounting for inventory. Determine ending inventory using this method. Assume there was no theft, ruined or spoiled inventory. (8 points) 1100/55 = 20 units 180 units => 9,747 520 units * 29,707/610 = 25,324 35,071 6/17 COGS Inventory 35,071 6/30 COGS Inventory 25,120 25.120 60,191 total COGS 78,714 total GAFS 18,523 EI 2. Provide dated journal entry(ies) to record cost of goods sold if the company uses average cost periodic method of accounting for inventory. Assume there was no theft, ruined or spoiled inventory. (9 points) 78,714/(220+610+180+450) = 53.91 53.91 * 5 = 59301 COGS 19,413 6/30 Inventory COGS Purchase discounts Purchase returns Purchases Inventory Freight-in 19,413 59,301 1,517 4,650 72,950 11,000 931Step by Step Solution
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