Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part A J & G Merchandising sells a variety of household items including a variety of clocks. The business began the first quarter (January to

image text in transcribed
image text in transcribed
Part A J & G Merchandising sells a variety of household items including a variety of clocks. The business began the first quarter (January to March) of 2019 with 20 (Seiko QHNOo6 GLH) non-chiming clocks at a total cost of $126,800. The business completed the following transactions relating to that brand and model during the quarter. January 8 105 clocks were purchased at a cost of $6,022 each. In addition the business paid a freight charge of $518 cash on each clock to have the inventory shipped from the point of purchase to their warehouse. January 31 The sales for January were 85 clocks which yielded total sales revenue of $768,400. ( 25 of these units were sold on account to longstanding customers) February 4 A new batch of 65 clocks was purchased at a total cost of $449,800 February 10 8 of the clocks purchased on February 4 were returned to the supplier, as they were not of the model ordered. February 28 During the month 58 clocks were sold at a price of $9.780 each. March 4 A customer, to whom 9 clocks were sold during the first business day of February, returned 3 of the clocks, as they were of the Bulova brand. March 10 Owing to an increased demand, a further 120 clocks were purchased at a cost of $8,000 each; these were subject to a trade discount of 2.5% each. March 31 130 clocks were sold during March at a unit selling price of $10,500. March 31 An actual count of inventory was carried out which revealed that there were 26 units of the SeikoQHNOO6 GLH brand of merchandise in the store room. Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required: i) Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method of inventory valuation to determine J & G Merchandising's cost of goods sold for the quarter and the value of ending (20 marks) PART A (i) J & G MERCHANDISING Inventory Record "SeikoQHN006 GLH" Clocks (FIFO Method) DATE PURCHASES COST OF GOODS SOLD INVENTORY BALANCE Unit Total Unit Total Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost Unit Total

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

Recommended Textbook for

Auditing The Modern Hospital

Authors: B. J Hall

1st Edition

0130516724, 978-0130516725

More Books

Students also viewed these Accounting questions