All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 1o bateries of the "Diellard" brand at a total cost of si68,200. The following transactions, relating to the "Dielard" brand were completed during the quarter: Purchased 15 batteries at a cost of $17,020 each. Sold 18 batteries at $22,2 50 per battery October 5 October 14 October 22 Purchased 24 batteries at a cost of S18,175 cach but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Lad and 10 batteries to Brown's Auto Detailing at a price of $23.990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,6 12 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor's warehouse to their location. November 27 Sold 23 batteries which yielded total sales revenue of $576,840. (8 of these batteries were sold on account to Middletoun Fuel & Auto Accessories a long standing customer) November 30 A customer, to whom 5 batteries were sold at the end of the business day on November 27, returned a units, as they were of the "Duralast" brand. In preparation for the festive season, All Things purchased 25 batteries at a total cost of $474.500. December 2 December 15 5 of the batteries purchased on December 2 were returned to the supplier, as the poles were either corroded or otherwise badly damaged. December 30 Sold 22 batteries to two customers (Omega Traders & Middleton Auto Accessories) at a selling price of Sa6.950 each. December 31 An actual count of inventory was carried out which revealed that there were 9 units of the Die Hard brand in the warehouse. All purchases were on account and received on the dates stated. Required: (A) Prepare a perpetual inventory record for All Things Auto, using the first in, first out (FIFO) method to determine the value of ending inventory at December 31, 2020, and the total amount to be assigned to cost of goods sold for the period. (B) Given that selling, distribution and administrative costs for the quarter were sa3.445. S10,250 ands75.435 respectively, prepare an income statement for All Things Auto (Die Hard) for the quarter ended December 31, 2020, to determine the net profit for the quarter. (C) Journalize the transactions on November 12 and November 27, assuming the business uses a Perpetual inventory system Perlodie inventory system
All Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 1o bateries of the "Diellard" brand at a total cost of si68,200. The following transactions, relating to the "Dielard" brand were completed during the quarter: Purchased 15 batteries at a cost of $17,020 each. Sold 18 batteries at $22,2 50 per battery October 5 October 14 October 22 Purchased 24 batteries at a cost of S18,175 cach but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Lad and 10 batteries to Brown's Auto Detailing at a price of $23.990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,6 12 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor's warehouse to their location. November 27 Sold 23 batteries which yielded total sales revenue of $576,840. (8 of these batteries were sold on account to Middletoun Fuel & Auto Accessories a long standing customer) November 30 A customer, to whom 5 batteries were sold at the end of the business day on November 27, returned a units, as they were of the "Duralast" brand. In preparation for the festive season, All Things purchased 25 batteries at a total cost of $474.500. December 2 December 15 5 of the batteries purchased on December 2 were returned to the supplier, as the poles were either corroded or otherwise badly damaged. December 30 Sold 22 batteries to two customers (Omega Traders & Middleton Auto Accessories) at a selling price of Sa6.950 each. December 31 An actual count of inventory was carried out which revealed that there were 9 units of the Die Hard brand in the warehouse. All purchases were on account and received on the dates stated. Required: (A) Prepare a perpetual inventory record for All Things Auto, using the first in, first out (FIFO) method to determine the value of ending inventory at December 31, 2020, and the total amount to be assigned to cost of goods sold for the period. (B) Given that selling, distribution and administrative costs for the quarter were sa3.445. S10,250 ands75.435 respectively, prepare an income statement for All Things Auto (Die Hard) for the quarter ended December 31, 2020, to determine the net profit for the quarter. (C) Journalize the transactions on November 12 and November 27, assuming the business uses a Perpetual inventory system Perlodie inventory system
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....
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