Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

T16-2 (similar to) 5. Wise Books has the following transactions in August related to merchandise inventory. (Click the icon to view the transactions.) Read

image text in transcribedimage text in transcribed

T16-2 (similar to) 5. Wise Books has the following transactions in August related to merchandise inventory. (Click the icon to view the transactions.) Read the requirements. Question Help a. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month: August 3: August 15: August 28: 4 books costing $13 each 4 books costing $13 each and 2 books costing $15 each 2 books costing $15 each and 1 books costing $17 each Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Requirements Purchases Cost of Goods Sold Inventory on Hand Unit Date Aug. 1 Quantity Cost Total Cost Unit Quantity Cost Total Cost Unit Total More Info Quantity Cost Cost 9 $ 13 $ 117 3 4 $ 13 $ 52 5 $ 13 $ 65 a. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month: August 3: 4 books costing $13 each Aug. 1 Beginning merchandise inventory, 9 books @ $13 each 12 5 $ 15 $ 75 5 $ 13 $ 65 5 $ 15 $ 75 15 4 $ 2 $ 13 $ 15 $ 330 52 1 $ 13 $ 13 3 $ 15 $ 45 August 15: 4 books costing $13 each and 2 books costing $15 each August 28: 2 books costing $15 each and 1 books costing $17 each b. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. Aug. 3 Sold 4 books @ $17 each Aug. 12 Purchased 5 books @ $15 each Aug. 15 Aug. 20 20 2 $ 17 $ 34 1 $ 13 $ 13 3 $ 15 $ 45 c. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the LIFO inventory costing method. Aug. 28 Sold 6 books @ $17 each Purchased 2 books @ $17 each Sold 3 books @ $23 each 2 $ 17 $ 34 2 $ 15 $ 30 1 $ 13 $ 13 d. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the weighted-average inventory costing method. Round weighted average unit cost to the nearest cent and total cost to the nearest dollar. Print Done 28 1 $ 17 $ 17 1 $ 15 $ 15 1 $ 17 $ 17 Totals 7 109 13 $ 181 $ 45 Print Done 3 b. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. Start by entering the beginning inventory balances Enter the transactions in chronological order calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the nernetual record calculate the quantity and total cost of merchandise inventory purchased sold and on Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

15th Edition

978-0840037039, 0840037031

More Books

Students also viewed these Accounting questions

Question

What is the mode?

Answered: 1 week ago

Question

When is a voucher recorded? LO2

Answered: 1 week ago