IAF310 Winter 2024 Assignment 2 Done
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Seneca College *
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Course
IAF310
Subject
Accounting
Date
Apr 3, 2024
Type
xlsx
Pages
19
Uploaded by nevlau
Month
Average Value of Inventory
Cost of Goods Sold
Jan-14
1000
500
Feb-14
1500
420
Mar-14
4500
900
Apr-14
6000
1600
May-14
7500
3500
Jun-14
9000
4900
Jul-14
7000
5800
Aug-14
8000
1600
Sep-14
3000
500
Oct-14
2000
3000
Nov-14
9000
5000
Dec-14
8900
7700
Jan-15
3000
6000
Feb-15
2000
2000
Mar-15
1500
900
Apr-15
6500
6000
May-15
7500
7500
Jun-15
8000
3500
Jul-15
10000
6500
Aug-15
8000
7500
Sep-15
5000
2000
Oct-15
4500
1200
Nov-15
8000
100
Dec-15
7000
10000
Jan-16
3000
9500
Feb-16
2000
1500
Mar-16
2500
2500
Apr-16
6000
6500
May-16
8500
6000
Jun-16
9000
1500
Jul-16
11500
100
Aug-16
5000
2500
Sep-16
10000
1200
Oct-16
10000
3000
Nov-16
11000
4500
Dec-16
6000
7500
Jan-17
4500
8000
Feb-17
2500
10000
Mar-17
3000
7500
Apr-17
7000
4500
May-17
9000
5000
Jun-17
9500
2000
Jul-17
12000
5000
Aug-17
11500
6000
Sep-17
5000
2000
Oct-17
5000
900
Nov-17
8000
6000
Dec-17
7000
7500
Jan-18
4400
7500
Feb-18
3000
6500
Mar-18
4500
4500
Apr-18
7500
3000
May-18
8000
5000
Jun-18
13500
2500
Jul-18
15000
4500
Aug-18
10000
14000
Sep-18
6000
7500
Oct-18
7000
10000
Nov-18
9800
11000
Dec-18
8000
15000
DAP8.1 An overview of this problem is provided at the end of Chapter 8. Additional instructions and materia
1. An excel spreadsheet has been provided representing Wheels and Skis’ average value of inv
A.
Material provided by Wheels and Skis Inc. to assist in your analysis
B.
Other information
1.
Inventory turnover is a ratio that indicates the number of times inventory “turns” (is
·
Average inventory is used to account for seasonality in sales
·
Inventory turnover can also be calculated by dividing sales by averag
·
Inventory turnover is used to calculate the “days on hand” for invento
als are set out below
ventory and cost of goods sold by month for the past five years. (See the raw data tab.)
s stocked and sold) in a year. It can be calculated by dividing cost of goods sold by average inventory. Since W
ge inventory, but this approach is less conservative because it inflates the inventory turnover ratio. ory, which is an important measure of business performance. To calculate days on hand, we divide the numbe
Wheels and Skis provided their data on a monthly basis, you should find the average monthly inventory on an er of days in the period by the inventory turnover for that period. For example, if the inventory turnover for on
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Related Questions
using perpetual inventory
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plas fast
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
7,900
$75.00
$592,500
10
Purchase
23,700
85.00
2,014,500
28
Sale
11,850
150.00
1,777,500
30
Sale
3,950
150.00
592,500
Feb. 5
Sale
1,580
150.00
237,000
10
Purchase
56,880
87.50
4,977,000
16
Sale
28,440
160.00
4,550,400
28
Sale
26,860
160.00
4,297,600
Mar. 5
Purchase
47,400
89.50
4,242,300
14
Sale
31,600
160.00
5,056,000
25
Purchase
7,900
90.00
711,000
30
Sale
27,650
160.00
4,424,000
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. The round unit costs two decimal places, if necessary.…
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Weighted average cost method with perpetual inventory
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
9,000
$60.00
$540,000
Jan. 10
Purchase
21,000
70.00
1,470,000
Jan. 28
Sale
10,250
140.00
1,435,000
Jan. 30
Sale
5,750
140.00
805,000
Feb. 5
Sale
3,500
140.00
490,000
Feb. 10
Purchase
39,500
75.00
2,962,500
Feb. 16
Sale
15,000
150.00
2,250,000
Feb. 28
Sale
10,000
150.00
1,500,000
Mar. 5
Purchase
25,000
82.00
2,050,000
Mar. 14
Sale
30,000
150.00
4,500,000
Mar. 25
Purchase
10,000
88.40
884,000
Mar. 30
Sale
19,000
150.00
2,850,000
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method.
2. Determine the total sales, the total cost of…
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Weighted average cost method with perpetual inventory
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
9,000
$60.00
$540,000
Jan. 10
Purchase
21,000
70.00
1,470,000
Jan. 28
Sale
10,250
140.00
1,435,000
Jan. 30
Sale
5,750
140.00
805,000
Feb. 5
Sale
3,500
140.00
490,000
Feb. 10
Purchase
39,500
75.00
2,962,500
Feb. 16
Sale
15,000
150.00
2,250,000
Feb. 28
Sale
10,000
150.00
1,500,000
Mar. 5
Purchase
25,000
82.00
2,050,000
Mar. 14
Sale
30,000
150.00
4,500,000
Mar. 25
Purchase
10,000
88.40
884,000
Mar. 30
Sale
19,000
150.00
2,850,000
1. Record the inventory, purchases, and cost of goods sold data
2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.
Line Item Description
Amount
Total sales
$
Total cost of goods sold
$
Gross profit
$
3. Determine…
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Required information
[The following information applies to the questions displayed below.]
A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for
the month of January are as follows:
Date of Purchase
January 10
January 18
Totals
Sales
Units
6,000
8,000
14,000
Date of Sale
January 5
January 12
January 20
Total
Includes purchase price and cost of freight.
Purchases
Unit Cost*
Units
4,000
2,000
5,000
11,000
$8
9
11,000 units were on hand at the end of the month.
Total Cost
$ 48,000
72,000
$ 120,000
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows:
Number Per
Date Transaction of Units Unit
Total
Jan.
Inventory
7,500 $75.00 $562,500
10 Purchase
22,500
85.00 1,912,500
28 Sale
11,250 150.00 1,687,500
30 Sale
3,750 150.00
562,500
Feb.
Sale
5.
1,500 150.00
225,000
10 Purchase
54,000 87.50 4,725,000
16 Sale
27,000 160.00 4,320,000
28 Sale
25,500 160.00 4,080,000
Mar.
Purchase
45,000
89.50 4,027,500
14 Sale
30,000 160.00 4,800,000
25 Purchase
7,500
90.00
675,000
30 Sale
26,250 160.00 4,200,000
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal plac
Midnight Supplies
Perpetual Inventory Account
Weighted Average Cost Method
For the three months ended March 31
Purchases
Cost of…
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Weighted average cost method with perpetual inventory
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
7,200
$76.00
$547,200
10
Purchase
21,600
86.00
1,857,600
28
Sale
10,800
152.00
1,641,600
30
Sale
3,600
152.00
547,200
Feb. 5
Sale
1,440
152.00
218,880
10
Purchase
51,840
88.50
4,587,840
16
Sale
25,920
162.00
4,199,040
28
Sale
24,480
162.00
3,965,760
Mar. 5
Purchase
43,200
90.50
3,909,600
14
Sale
28,800
162.00
4,665,600
25
Purchase
7,200
91.00
655,200
30
Sale
25,200
162.00
4,082,400
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round all total cost amounts to the nearest dollar.
Date
PurchasesQuantity…
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
7,100
$78.00
$553,800
10
Purchase
21,300
88.00
1,874,400
28
Sale
10,650
156.00
1,661,400
30
Sale
3,550
156.00
553,800
Feb. 5
Sale
1,420
156.00
221,520
10
Purchase
51,120
90.50
4,626,360
16
Sale
25,560
166.00
4,242,960
28
Sale
24,140
166.00
4,007,240
Mar. 5
Purchase
42,600
92.50
3,940,500
14
Sale
28,400
166.00
4,714,400
25
Purchase
7,100
93.00
660,300
30
Sale
24,850
166.00
4,125,100
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
7,500
$75.00
$562,500
10
Purchase
22,500
85.00
1,912,500
28
Sale
11,250
150.00
1,687,500
30
Sale
3,750
150.00
562,500
Feb. 5
Sale
1,500
150.00
225,000
10
Purchase
54,000
87.50
4,725,000
16
Sale
27,000
160.00
4,320,000
28
Sale
25,500
160.00
4,080,000
Mar. 5
Purchase
45,000
89.50
4,027,500
14
Sale
30,000
160.00
4,800,000
25
Purchase
7,500
90.00
675,000
30
Sale
26,250
160.00
4,200,000
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…
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Weighted Average Cost Flow Method Under Perpetual Inventory System
The following units of a particular item were available for sale during the calendar year:
Jan. 1
Inventory
10,000 units at $75.00
8,000 units
18,000 units at $77.50
15,000 units
7,000 units at $80.25
The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.
Round unit cost to two decimal places, if necessary.
Mar. 18
May 2
Aug. 9
Oct. 20
Date
Jan. 1
Mar. 18
May 2
Aug. 9
Oct. 20
Dec. 31
Sale
Purchase
Sale
Purchase
Quantity
Balances
Purchases
Unit Cost
Total Cost
Schedule of Cost of Goods Sold
Weighted Average Cost Flow Method
Cost of Goods Sold
Unit Cost
Quantity
r
Total Cost
Quantity
Inventory
Unit Cost
Total Cost
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
8,000
$71.00
$568,000
10
Purchase
24,000
81.00
1,944,000
28
Sale
12,000
142.00
1,704,000
30
Sale
4,000
142.00
568,000
Feb. 5
Sale
1,600
142.00
227,200
10
Purchase
57,600
83.50
4,809,600
16
Sale
28,800
152.00
4,377,600
28
Sale
27,200
152.00
4,134,400
Mar. 5
Purchase
48,000
85.50
4,104,000
14
Sale
32,000
152.00
4,864,000
25
Purchase
8,000
86.00
688,000
30
Sale
28,000
152.00
4,256,000
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
8,000
$72.00
$576,000
10
Purchase
24,000
82.00
1,968,000
28
Sale
12,000
144.00
1,728,000
30
Sale
4,000
144.00
576,000
Feb. 5
Sale
1,600
144.00
230,400
10
Purchase
57,600
84.50
4,867,200
16
Sale
28,800
154.00
4,435,200
28
Sale
27,200
154.00
4,188,800
Mar. 5
Purchase
48,000
86.50
4,152,000
14
Sale
32,000
154.00
4,928,000
25
Purchase
8,000
87.00
696,000
30
Sale
28,000
154.00
4,312,000
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
7,500
$79.00
$592,500
10
Purchase
22,500
89.00
2,002,500
28
Sale
11,250
158.00
1,777,500
30
Sale
3,750
158.00
592,500
Feb. 5
Sale
1,500
158.00
237,000
10
Purchase
54,000
91.50
4,941,000
16
Sale
27,000
168.00
4,536,000
28
Sale
25,500
168.00
4,284,000
Mar. 5
Purchase
45,000
93.50
4,207,500
14
Sale
30,000
168.00
5,040,000
25
Purchase
7,500
94.00
705,000
30
Sale
26,250
168.00
4,410,000
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…
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5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.
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month of January:
P 440,000
800,000
4,500,000
2,900,000
240,000
350,000
100,000
250,000
100,000
600,000
100,000
6,500,000
100,000
500,000
200,000
100,000
Beginning inventory at cost
Beginning inventory at sales price
Purchases at cost
Initial markup on purchases
Purchase returns at cost
Purchase returns at sales price
Freight on purchases
Additional markup
Markup cancellations
Markdown
Markdown cancellations
Net sales
Sales allowances
Sales returns
Employee discounts
Theft and other losses
Required:
Compute the estimated cost of inventory at the end of the current year
using:
1. Average retail inventory method
2. FIFO retail inventory method
3. Conventional (lower of cost or market) retail inventory method
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Date
Purchases
Sales
Units
Cost/Unit
Units
Jan. 1
100
$0.80
Jan. 4
390
0.90
Jan. 5
280
Jan. 10
280
1.00
Jan. 12
200
Jan. 15
190
1.10
Jan. 18
500
1.30
Jan. 22
770
Jan. 27
110
Jan. 31
310
1.50
Required:
Calculate the total amount to be assigned to cost of goods sold for January and the ending inventory on January 31, under each of the following methods. In your calculations round the average unit cost to four decimal places and answers to the nearest cent.
Cost of Goods Sold
Inventory on Hand
1. Perpetual LIFO inventory method
$fill in the blank 1
$fill in the blank 2
2. Perpetual moving-average inventory method
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Calculate Inventory Carrying Cost (ICC) using the information below.
annual demand
ordering cost per order
inventory carrying cost percentage
leadtime
unit value
#days in the period.
EOQ
1000
$75
20%
3 days
$30
360
158
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Weighted Average Cost Method with Perpetual Inventory
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows:
Date
Transaction
Numberof Units
Per Unit
Total
Jan. 1
Inventory
7,500
$75.00
$562,500
10
Purchase
22,500
85.00
1,912,500
28
Sale
11,250
150.00
1,687,500
30
Sale
3,750
150.00
562,500
Feb. 5
Sale
1,500
150.00
225,000
10
Purchase
54,000
87.50
4,725,000
16
Sale
27,000
160.00
4,320,000
28
Sale
25,500
160.00
4,080,000
Mar. 5
Purchase
45,000
89.50
4,027,500
14
Sale
30,000
160.00
4,800,000
25
Purchase
7,500
90.00
675,000
30
Sale
26,250
160.00
4,200,000
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Current Year
Preceding Year
Sales
$9,700,000
$7,175,000
Beginning inventories
420,000
400,000
Cost of goods sold
5,820,000
4,305,000
Ending inventories
550,000
420,000
a. (1.) Determine for each year the inventory turnover. Round answers to one decimal place.
Current year
?
Preceding year
?
(2). Determine for each year the number of days' sales in inventory. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place.
Current year
?
Preceding year
?
b. What conclusions can be drawn from these data concerning the inventories? (sales volume increased faster than the inventory, resultung in an improving inventory position/inventory increased faster than sales colume, resulting in a deteriorating inventroy position/ no conclusion about the inventory position can be drawn from these data)
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Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These
devices have very fast access and large storage capacity.
Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level is
to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any
adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not the
lowest-cost alternative. The forecast for the next 12 months is
MONTH
January
February
March
April
May
June
FORECAST
DEMAND
605
805
905
605
405
305
MONTH
July
August
September
October
November
December
FORECAST
DEMAND
205
205
305
705
805
905
Manufacturing cost is $220 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per month
and is assigned based on the ending…
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How much is the cost of issuances on April 10 using Moving Average method?How much is the ending inventory on April 10 using Moving Average method?
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What is the average inventory at retail? [round off numbers]
BOM
EOM
January
$50,500
$53,400
February
$52,900
$54,100
March
$54,200
$55,800
April
$53,300
S56,300
Мay
$56,300
$57,500
June
$53,900
$54,300
O $53,034
O $54,527
$54,573
$53,629
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Question Content Area
Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year.
Sales on account during year
$463,358
Cost of merchandise sold during year
205,692
Accounts receivable, beginning of year
46,704
Accounts receivable, end of year
51,670
Merchandise inventory, beginning of year
33,192
Merchandise inventory, end of year
39,686
Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number.
a.59 days
b.65 days
c.129 days
d.70 days
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Number of units
Cost per unit
Opening balance 1 November
20
4.00
Receipt
8 November
140
4.40
Issues
12 November
80
Receipt
18 November
100
4.60
Issues
26 November
140
Calculate the value of inventory on hand at 8 November using the Weighted Average Cost
the nearest dollar.
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Question Content Area
Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year.
Sales on account during year
$575,757
Cost of merchandise sold during year
193,428
Accounts receivable, beginning of year
43,481
Accounts receivable, end of year
51,054
Merchandise inventory, beginning of year
32,544
Merchandise inventory, end of year
43,018
Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number.
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3. The Inventory Company' data are as follows:
Average re-order period
Optimum number of orders per year
Average daily usage
Cost to store one unit per year
Cost of stock out per unit per time`
Usage during
re-order period
80
90
100
115
125
150
175
Frequency
4
6
10
35
20
15
10
25 days
10 per year
4 units
$5
P20
0
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Question Content Area
Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365-day year.
Sales on account during year
$415,904
Cost of goods sold during year
201,696
Accounts receivable, beginning of year
48,891
Accounts receivable, end of year
46,909
Inventory, beginning of year
34,594
Inventory, end of year
37,511
Do not round interim calculations. Round your final answer up to the nearest whole day.
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- using perpetual inventoryarrow_forwardplas fastarrow_forwardWeighted Average Cost Method with Perpetual Inventory The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows: Date Transaction Numberof Units Per Unit Total Jan. 1 Inventory 7,900 $75.00 $592,500 10 Purchase 23,700 85.00 2,014,500 28 Sale 11,850 150.00 1,777,500 30 Sale 3,950 150.00 592,500 Feb. 5 Sale 1,580 150.00 237,000 10 Purchase 56,880 87.50 4,977,000 16 Sale 28,440 160.00 4,550,400 28 Sale 26,860 160.00 4,297,600 Mar. 5 Purchase 47,400 89.50 4,242,300 14 Sale 31,600 160.00 5,056,000 25 Purchase 7,900 90.00 711,000 30 Sale 27,650 160.00 4,424,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. The round unit costs two decimal places, if necessary.…arrow_forward
- Weighted average cost method with perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Numberof Units Per Unit Total Jan. 1 Inventory 9,000 $60.00 $540,000 Jan. 10 Purchase 21,000 70.00 1,470,000 Jan. 28 Sale 10,250 140.00 1,435,000 Jan. 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 Feb. 10 Purchase 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 Mar. 14 Sale 30,000 150.00 4,500,000 Mar. 25 Purchase 10,000 88.40 884,000 Mar. 30 Sale 19,000 150.00 2,850,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. 2. Determine the total sales, the total cost of…arrow_forwardWeighted average cost method with perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Numberof Units Per Unit Total Jan. 1 Inventory 9,000 $60.00 $540,000 Jan. 10 Purchase 21,000 70.00 1,470,000 Jan. 28 Sale 10,250 140.00 1,435,000 Jan. 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 Feb. 10 Purchase 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 Mar. 14 Sale 30,000 150.00 4,500,000 Mar. 25 Purchase 10,000 88.40 884,000 Mar. 30 Sale 19,000 150.00 2,850,000 1. Record the inventory, purchases, and cost of goods sold data 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. Line Item Description Amount Total sales $ Total cost of goods sold $ Gross profit $ 3. Determine…arrow_forwardRequired information [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Sales Units 6,000 8,000 14,000 Date of Sale January 5 January 12 January 20 Total Includes purchase price and cost of freight. Purchases Unit Cost* Units 4,000 2,000 5,000 11,000 $8 9 11,000 units were on hand at the end of the month. Total Cost $ 48,000 72,000 $ 120,000arrow_forward
- Weighted Average Cost Method with Perpetual Inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows: Number Per Date Transaction of Units Unit Total Jan. Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. Sale 5. 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal plac Midnight Supplies Perpetual Inventory Account Weighted Average Cost Method For the three months ended March 31 Purchases Cost of…arrow_forwardWeighted average cost method with perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Numberof Units Per Unit Total Jan. 1 Inventory 7,200 $76.00 $547,200 10 Purchase 21,600 86.00 1,857,600 28 Sale 10,800 152.00 1,641,600 30 Sale 3,600 152.00 547,200 Feb. 5 Sale 1,440 152.00 218,880 10 Purchase 51,840 88.50 4,587,840 16 Sale 25,920 162.00 4,199,040 28 Sale 24,480 162.00 3,965,760 Mar. 5 Purchase 43,200 90.50 3,909,600 14 Sale 28,800 162.00 4,665,600 25 Purchase 7,200 91.00 655,200 30 Sale 25,200 162.00 4,082,400 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round all total cost amounts to the nearest dollar. Date PurchasesQuantity…arrow_forwardWeighted Average Cost Method with Perpetual Inventory The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows: Date Transaction Numberof Units Per Unit Total Jan. 1 Inventory 7,100 $78.00 $553,800 10 Purchase 21,300 88.00 1,874,400 28 Sale 10,650 156.00 1,661,400 30 Sale 3,550 156.00 553,800 Feb. 5 Sale 1,420 156.00 221,520 10 Purchase 51,120 90.50 4,626,360 16 Sale 25,560 166.00 4,242,960 28 Sale 24,140 166.00 4,007,240 Mar. 5 Purchase 42,600 92.50 3,940,500 14 Sale 28,400 166.00 4,714,400 25 Purchase 7,100 93.00 660,300 30 Sale 24,850 166.00 4,125,100 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…arrow_forward
- Weighted Average Cost Method with Perpetual Inventory The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows: Date Transaction Numberof Units Per Unit Total Jan. 1 Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…arrow_forwardWeighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 10,000 units at $75.00 8,000 units 18,000 units at $77.50 15,000 units 7,000 units at $80.25 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary. Mar. 18 May 2 Aug. 9 Oct. 20 Date Jan. 1 Mar. 18 May 2 Aug. 9 Oct. 20 Dec. 31 Sale Purchase Sale Purchase Quantity Balances Purchases Unit Cost Total Cost Schedule of Cost of Goods Sold Weighted Average Cost Flow Method Cost of Goods Sold Unit Cost Quantity r Total Cost Quantity Inventory Unit Cost Total Costarrow_forwardWeighted Average Cost Method with Perpetual Inventory The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows: Date Transaction Numberof Units Per Unit Total Jan. 1 Inventory 8,000 $71.00 $568,000 10 Purchase 24,000 81.00 1,944,000 28 Sale 12,000 142.00 1,704,000 30 Sale 4,000 142.00 568,000 Feb. 5 Sale 1,600 142.00 227,200 10 Purchase 57,600 83.50 4,809,600 16 Sale 28,800 152.00 4,377,600 28 Sale 27,200 152.00 4,134,400 Mar. 5 Purchase 48,000 85.50 4,104,000 14 Sale 32,000 152.00 4,864,000 25 Purchase 8,000 86.00 688,000 30 Sale 28,000 152.00 4,256,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round…arrow_forward
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Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
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ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial Accounting
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ISBN:9781337272124
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