Question 2: Toso Company uses the periodic inventory system to account for inventories. Information related to Tosc Company's inventory at October 31 is given below: October 1 Beginning inventory 400 units @ 10.00 = 4,000 8 Purchase 800 units @ 10.40 = 8,320 16 Purchase 600 units @ 10.80 = 6,480 24 Purchase 200 units @ 11.60 = 2.320 Total units and cost 2,000 units 21.120 ACCI-FINAL REVISION SPRING 2018-19 Journal Entries for Merchandising Operations On March 1, Tina Cycle Store had an inventory of 100 bicycles at a cost of $300 each. During the month of March, the following transactions occurred. March. 4 Purchased bicycles at a cost of $4000 from Wim Cycle Company, terms 2/10, 1/30. Paid freight of &$120 cash Sold bicycles to Team UAE for $4800, terms 2/10, 1/30, cost of $3,000 7 Received credit from Wim Cycle Company for the return of defective bicycles for $600. 13 Issued a credit memo to Team UAE for the return of defective bicycles for $900, cost of $300 14 Paid Wim Cycle Company full net amount. Inventory Cost Flow Method 1/1 6/2 13/9 20/10 25/11 $50 $55 50 50 150 100 150 units @ units @ units @ units a units @ $1.00 $1.10 $1.20 $1.30 $1.40 - = = $180 $130 $210 Units Purchased: 500 units $625 Question 2: Toso Company uses the periodic inventory system to account for inventories. Information related to Tosc Company's inventory at October 31 is given below: October 1 Beginning inventory 400 units @ 10.00 = 4,000 8 Purchase 800 units @ 10.40 = 8,320 16 Purchase 600 units @ 10.80 = 6,480 24 Purchase 200 units @ 11.60 = 2.320 Total units and cost 2,000 units 21.120 ACCI-FINAL REVISION SPRING 2018-19 Journal Entries for Merchandising Operations On March 1, Tina Cycle Store had an inventory of 100 bicycles at a cost of $300 each. During the month of March, the following transactions occurred. March. 4 Purchased bicycles at a cost of $4000 from Wim Cycle Company, terms 2/10, 1/30. Paid freight of &$120 cash Sold bicycles to Team UAE for $4800, terms 2/10, 1/30, cost of $3,000 7 Received credit from Wim Cycle Company for the return of defective bicycles for $600. 13 Issued a credit memo to Team UAE for the return of defective bicycles for $900, cost of $300 14 Paid Wim Cycle Company full net amount. Inventory Cost Flow Method 1/1 6/2 13/9 20/10 25/11 $50 $55 50 50 150 100 150 units @ units @ units @ units a units @ $1.00 $1.10 $1.20 $1.30 $1.40 - = = $180 $130 $210 Units Purchased: 500 units $625