Question
Question 1 During the months of November and December 2014, Comfy Home had the following transactions related to holiday candles: November 1, 2014 purchased 200
Question 1
During the months of November and December 2014, Comfy Home had the following transactions related to holiday candles:
- November 1, 2014 purchased 200 candles for $5 each
- Between November 2-30, 2014 sold 130 candles for a sales price of $15 each
- December 1, 2014 purchased 260 candles for $6 each
- Between December 2-31, 2014 sold 300 candles for a sales price of $15 each
Comfy Home uses a perpetual inventory system. If Comfy Home uses the LIFO method for recording its inventory, what is the amount transferred to the cost of goods sold account during the month of December 2014?
Question 2
During the months of November and December 2014, Comfy Home had the following transactions related to holiday candles:
- November 1, 2014 purchased 200 candles for $5 each
- Between November 2-30, 2014 sold 130 candles for a sales price of $15 each
- December 1, 2014 purchased 260 candles for $6 each
- Between December 2-31, 2014 sold 300 candles for a sales price of $15 each
Comfy Home uses a perpetual inventory system. If Comfy Home uses the FIFO method for recording their inventory, what is the amount transferred to the cost of goods sold account during the month of December 2014?
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College Accounting Chapters 1-30
Authors: David Haddock, John Price, Michael Farina
16th Edition
1260247902, 978-1260247909
