Question: 2 Casper Inc. buys and sells a household cleaning item for the last 8 years at their New Jersey outlet The following information is for Casper Inc. for the month ended June 30 2018. Casper Inc. uses the periodic method for inventory. Date Description Quantity Unit Cost or Selling Price June 1 Opening Inventory 80 80 June 3 Purchase 270 86 June 5 Sale 220 140 June 9 Sale 15 25 June 11 Sales Return 30 140 June 13 Purchase 110 92 June 15 Purchase Return 20 92 June 17 Sale 130 152 June 19 Purchase 70 100 Required: a. Calculate (1) Ending Inventory (i) Cost of Goods sold, CH) Gross Profit Under each of the following methods. LIFO. (2) FIFO, (3) Average-cost. b. From your calculations, analyze which method results in 1. The highest ending inventory, and 2. The highest cost of goods sold. Question: 1 On December 1, 2020, Company had the following account balances. Debit Cash $ 7,200 Accumulated Depreciation- Equipment Accounts receivable 4.600 Accounts Payable Inventory 12.000 Salaries and Wages Payable Supplies 1,200 Owner's Capital Equipment 22.000 $47.000 Credit $ 2,200 4,500 1.000 39,300 $47.000 During December, the company completed the following summary transactions. December 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10, 1/60. Appropriate party paid freight on purchases $50. December 9 Received credit from Tiger Co.for merchandise returned $100. December 10 Sold merchandise on account to John traders $600, FOB shipping point, terms 2/15, 1/30. The cost of goods sold is $400. Appropriate party paid freight cost $20. December 12 Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear S450, FOB destination, terms 3/10, n/30. Appropriate party paid freight on purchases $50. December 16 Paid Tiger Co. in full. December 17 Received credit from Classic Sportswear for merchandise returned $50. December 20 Made sales on account to Chenzi traders $500, FOB Destination, terms 2/10, 1/30. Cost of goods sold is $300 Appropriate party paid freight cost $20. December 21 Paid Classic Sportswear in full December 23 Goods returned from Chenzi traders $100. The cost of goods sold is $30 December 30 Received payments from Chenzi traders in full. December 31 Received payments from John traders in full. Instructions a. Journalize the December transactions using both perpetual and periodic inventory system in a table side by side. b. Enter the December 1 balances in the ledger and post the December transactions and prepare a trail balance on December 31 (using perpetual inventory system)
