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Problem) Hello Dolly Company manufactures high-end dolls. They had beginning inventory of $306,000 on May 1. Throughout the month of May, they had the following
Problem) | Hello Dolly Company manufactures high-end dolls. They had beginning inventory of $306,000 on May 1. Throughout the month of May, they had the following inventory transactions: | ||
3-May | Purchased $80,000 of inventory from Mirabelle Company, terms FOB shipping. | ||
The goods shipped on May 5th and were received on May 10th | |||
4-May | Paid freight costs of $350 for goods purchased from Mirabelle Company. | ||
6-May | Sold $22,000 of goods to M.M. Schultz Toy Company, terms FOB shipping point. The selling price was $30,000. | ||
8-May | Purchased $15,600 of specialty material from Silky Sue's to make the doll dresses. | ||
The good were shipped FOB destination on May 9th and arrived on May 14th. | |||
10-May | Sold goods for $32,000 that cost $20,000 of goods to Wonder Toys, terms FOB shipping point. The goods shipped on May 11 and arrived on May 15. | ||
11-May | Due to overcrowding at the factory warehouse, Hello Dolly had to pay $850 | ||
to store the recently purchased inventory for the month. | |||
16-May | Paid $3,500 to sew dresses for the dolls | ||
19-May | Sold $50,000 of dolls to Le Petit Jouet, terms FOB destination. The | ||
goods cost $40,000 and shipped on May 20th and arrived on May 25th. | |||
Shipping costs were $520. | |||
20-May | Purchased $45,000 of goods from Ma Petite Fille in Paris, France. | ||
Goods were shipped FOB destination on May 21st and arrived on May 31st. | |||
21-May | Purchased $21,000 of synthetic doll hair from Hairo Corp, terms FOB shipping. | ||
Goods shipped on May 23 and arrived on May 28. | |||
23-May | Paid freight costs of $400 for goods shipped from Hairo Corp. | ||
24-May | Paid $2,600 to assemble the dolls and paint their faces. | ||
25-May | Sold $35,000 of dolls to My Little Princess doll store, terms FOB | ||
destination. The goods cost $28,000, shipped on May 26th and arrived on | |||
May 31st. Shipping costs were $320. | |||
26-May | Purchased $5,000 of lace from Lucy's Lace, terms FOB shipping point. | ||
Goods shipped on May 27 and arrived on June 2nd | |||
27-May | Paid freights costs of $120 for goods shipped from Lucy's Lace. | ||
27-May | Sold $40,000 of dolls to Lolly's Dollys, terms FOB shipping point. | ||
The goods cost $32,00, shipped on May 28th and arrived on June 3rd. | |||
28-May | Purchased $27,000 of goods from Averie Corp, terms FOB destination. | ||
Goods were shipped on May 29 and arrived on June 3rd. | |||
30-May | Paid wages and salaries of $36,000 to assembly workers and supervisors, | ||
and $2,150 of interest on a loan that was partially used to purchase the inventory. | |||
31-May | Paid customs fees of $2,400 for goods shipped from Le Petite Amie. | ||
Required: | |||
For each transaction, determine the amount that should be added to or deducted from Hello Dollys inventory account. If an amount does not impact the inventory account, write N/A. |
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