Question 3 [14 points]

The X-cell Inc. company has the following purchases and sales during the year ended December 31, 2014.

Question 3 (14 points) The X-cell Inc. company has the following purchases and sales during the year ended December 31, 2014. Sales Inventory and Purchases Specific Units Sold Beginning: 200 units @ $19/unit March 25: 200 units March 25: 110 units from beginning inventory February 1: 200 units @ $20/unit August 15: 200 units 90 units from the February 1 purchase May 7: 200 units @ $21/unit August 15: 50 units from beginning inventory 40 units from the February 1 purchase 110 units from the May 7 purchase The units have a selling price of $25.00 per unit. a) Given that X-cell Inc. employs a perpetual inventory system, calculate the cost of goods available for sale and the number of units available for sale, as well as the units remaining in ending inventory Cost of goods available for sale: Units available for sale: Units remaining in ending inventory: b) Please fill in the table by calculating the dollar value of cost of goods sold and ending inventory, as well as the gross profit earned by X-cell Inc. using the specific identification system Specific Identification Cost of Goods Sold Ending Inventory Gross Profit c) Prepare journal entries to record the following (assuming all sales and purchases are for cash): (a) The purchase on May 7, (b) The sale on August 15. Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions. Dates must be entered in the format dd/mmm (ie. 15/Jan). General Journal Page GJ8 Date Account/Explanation F Debit Credit