The following merchandise transactions occured in december. Both companies use a perpetual inventory systemDec. 3 Blue Spruce Ltd. Sold goods to swifty corp. For $77,800,terms n/15, FOB shipping point. The inventory had cost blue spruce $41,400. Blue Spruce's management expected a return rate of 3% based on prior experience.Dec. 7 Shipping costs of $1,080 were paid by the appropriate companyDec. 8 Swifty returned unwanted merchandise to blue spruce. The returned merchandise has a sales price of $2,400, and a cost of $1,280. It was restored to inventory.Dec 11 Blue Spruce received the balance due from swifty. e to searchDec. 7Dec. 8 VDec. 8Dec/11(To record cost of merchandise sold)No EntryNo EntrySales Returns and AllowancesAccounts Receivable(To record return of goods)InventoryCost of Goods Sold(To record cost of merchandise returned)CashAccounts Receivable담24001280077800CD B7542423°C Sunny e to searchDateDec. 3Dec. 3Dec: 7Account Titles and ExplanationAccounts ReceivableSalesEstimated Inventory Returns(To record credit sale)Cost of Goods SoldEstimated Inventory ReturnsInventory(To record cost of merchandise sold)No EntryDebit77,800426421242Credit75442623°C Sunny^ G

A journal entry is a form of accounting entry that is used to report a business transaction in a…

The following merchandise transactions occured in december. Both companies use a perpetual inventory system Dec. 3 Blue Spruce Ltd. Sold goods to swifty corp. For $77,800,terms n/15, FOB shipping point. The inventory had cost blue spruce $41,400. Blue Spruce's management expected a return rate of 3% based on prior experience. Dec. 7 Shipping costs of $1,080 were paid by the appropriate company Dec. 8 Swifty returned unwanted merchandise to blue spruce. The returned merchandise has a sales price of $2,400, and a cost of $1,280. It was restored to inventory. Dec 11 Blue Spruce received the balance due from swifty.

The following merchandise transactions occured in december. Both companies use a perpetual inventory system Dec. 3 Blue Spruce Ltd. Sold goods to swifty corp. For $77,800,terms n/15, FOB shipping point. The inventory had cost blue spruce $41,400. Blue Spruce's management expected a return rate of 3% based on prior experience. Dec. 7 Shipping costs of $1,080 were paid by the appropriate company Dec. 8 Swifty returned unwanted merchandise to blue spruce. The returned merchandise has a sales price of $2,400, and a cost of $1,280. It was restored to inventory. Dec 11 Blue Spruce received the balance due from swifty.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 44E: Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual...

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Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Total cost Unit Cost $7000 $7100 $7250 Purchase Date Units Purchased May 2 May 20 May 25 $28,000 14,200 4 8 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:
2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Total cost Unit Cost $7000 $7100 $7250 Purchase Date Units Purchased May 2 May 20 May 25 $28,000 14,200 4 8 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:
helppppp Hemming Co. uses a perpetual inventory system A.) Determine the cost assigned to ending inventory and to the cost of goods sold using FIFO. B.) Determine the cost assigned to ending inventory and to the cost of goods sold using LIFO. c.) Compute the gross margin for FIFO and LIFO method
Dashboard CengageNOWV2| Onlin X ps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Calculator Delmar Industries uses the perpetual inventory method in accounting for inventory. Prepare the necessary adjusting entry for each of the following independent cases using the cost of goods sold accoun If an amount box does not require an entry, leave it blank. Case 1 Physical count as of April 30 $43,100 Perpetual inventory records as of April 30 41,800 Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 Apг. 30 If an amount box does not require an entry, leave it blank. Case 2 Physical count as of April 30 $37,800 Perpetual inventory records as of April 30 38,300 Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 Apr. 30 2. 1, 2. 2.
B. assume that blue uses the perpetual iventory system compute the ending inventory cost , cost of good sold , and gros profit for the inventory costing method 4. fifo 5. lifo 6. moving average
shboard E W Boilermaker unlimi.. uiz 6 Under a perpetual inventory system: Multiple Choice Cost of good sold is recorded with a period-end adjusting entry. Purchase discounts are not recorded. Inventory purchases are recorded only at the end of the period. Cost of goods sold is recorded with each sale. < Prev Type here to search
Q-1: What is Perpetual and Periodic Inventory System? Explain the differences between both. Record all the transactional entries for the sales and purchases of inventory.
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compute ending inventory and cost of goods sold using FIFO assuming bramble use the periodic inventory system