Assume that RK Tire Store completed the following perpetual inventory transactions for a line of tires: May 1 Beginning merchandise inventory 24 tires @ $ 61 each 11 Purchase 6 tires @ $ 76 each 23 Sale 16 tires @ $ 89 each 26 Purchase 14 tires @ $ 86 each 29 Sale 17 tires @ $ 89 each Requirements 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method. 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method. 3. Compute cost of goods sold and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Fred White Corporation operates four bowling alleys. The business just received the October 31, 2016, bank statement from City National Bank, and the statement shows an ending balance of $885. Listed on the statement are an EFT rent collection of $410, a service charge of $10, NSF checks totaling $65, and a $30 charge for printed checks. In reviewing the cash records, the business identified outstanding checks total- ing $470 and a deposit in transit of $1,785. During October, the business recorded a $270 check by debiting Salaries Expense and crediting Cash for $27. The business's Cash account shows an October 31 balance of $2,138. Requirements 1. Prepare the bank reconciliation at October 31. During August 2016, Ritter Company recorded the following: Sales of $62,100 ($55,000 on account; $7,100 for cash). Ignore Cost of Goods Sold. Collections on account, $37,800. Write-offs of uncollectible receivables, $1,690. Recovery of receivable previously written off, $500. Requirements 1. Journalize Ritter's transactions during August 2016, assuming Ritter uses the direct write-off method. 2. Journalize Ritter's transactions during August 2016, assuming Ritter uses the allowance method.
Assume that RK Tire Store completed the following perpetual inventory transactions for a line of tires: May 1 Beginning merchandise inventory 24 tires @ $ 61 each 11 Purchase 6 tires @ $ 76 each 23 Sale 16 tires @ $ 89 each 26 Purchase 14 tires @ $ 86 each 29 Sale 17 tires @ $ 89 each Requirements 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method. 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method. 3. Compute cost of goods sold and gross profit using the weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.) Fred White Corporation operates four bowling alleys. The business just received the October 31, 2016, bank statement from City National Bank, and the statement shows an ending balance of $885. Listed on the statement are an EFT rent collection of $410, a service charge of $10, NSF checks totaling $65, and a $30 charge for printed checks. In reviewing the cash records, the business identified outstanding checks total- ing $470 and a deposit in transit of $1,785. During October, the business recorded a $270 check by debiting Salaries Expense and crediting Cash for $27. The business's Cash account shows an October 31 balance of $2,138. Requirements 1. Prepare the bank reconciliation at October 31. During August 2016, Ritter Company recorded the following: Sales of $62,100 ($55,000 on account; $7,100 for cash). Ignore Cost of Goods Sold. Collections on account, $37,800. Write-offs of uncollectible receivables, $1,690. Recovery of receivable previously written off, $500. Requirements 1. Journalize Ritter's transactions during August 2016, assuming Ritter uses the direct write-off method. 2. Journalize Ritter's transactions during August 2016, assuming Ritter uses the allowance method.
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 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...
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Transcribed Image Text:Assume that RK Tire Store completed the following perpetual inventory transactions
for a line of tires:
May 1
Beginning merchandise inventory
24 tires @ $ 61 each
11
Purchase
6 tires @ $ 76 each
23
Sale
16 tires @ $ 89 each
26
Purchase
14 tires @ $ 86 each
29
Sale
17 tires @ $ 89 each
Requirements
1. Compute cost of goods sold and gross profit using the FIFO inventory costing
method.
2. Compute cost of goods sold and gross profit using the LIFO inventory costing
method.
3. Compute cost of goods sold and gross profit using the weighted-average inventory
costing method. (Round weighted-average cost per unit to the nearest cent and all
other amounts to the nearest dollar.)
Fred White Corporation operates four bowling alleys. The business just received the
October 31, 2016, bank statement from City National Bank, and the statement shows
an ending balance of $885. Listed on the statement are an EFT rent collection of
$410, a service charge of $10, NSF checks totaling $65, and a $30 charge for printed
checks. In reviewing the cash records, the business identified outstanding checks total-
ing $470 and a deposit in transit of $1,785. During October, the business recorded a
$270 check by debiting Salaries Expense and crediting Cash for $27. The business's
Cash account shows an October 31 balance of $2,138.
Requirements
1. Prepare the bank reconciliation at October 31.
Transcribed Image Text:During August 2016, Ritter Company recorded the following:
Sales of $62,100 ($55,000 on account; $7,100 for cash). Ignore Cost of Goods Sold.
Collections on account, $37,800.
Write-offs of uncollectible receivables, $1,690.
Recovery of receivable previously written off, $500.
Requirements
1. Journalize Ritter's transactions during August 2016, assuming Ritter uses the direct
write-off method.
2. Journalize Ritter's transactions during August 2016, assuming Ritter uses the
allowance method.
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