At the beginning of November, Yoshi Inc.’s inventory consists of 64 units with a cost per unit of $96. The following transactions occur during the month of November. November 2 Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $320. November 9 Return 16 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,600. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $7,700. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) Required: 1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Nov 02 Record purchase of 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. 2. Nov 03 Record payment of cash for freight charges related to the November 2 purchase, $320. 3. Nov 09 Record return of 16 defective units from the November 2 purchase and receive credit. 4. Nov 11 Record payment to Toad Inc. in full. 5. Nov !6 Record the sale of 100 units of inventory to customers on account, $12,600. 6. Nov 16 Record the sale of 100 units of inventory to customers on account, $12,600. 7. Nov 20 Record receipt of full payment from customers related to the sale on November 16. 8. Nov 21 Record purchase of 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. 9. Nov 24 Record the sale of 70 units of inventory to customers for cash, $7,700. 10. Nov 24 Record the cost of inventory sold.

At the beginning of November, Yoshi Inc.’s inventory consists of 64 units with a cost per unit of $96. The following transactions occur during the month of November. November 2 Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $320. November 9 Return 16 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,600. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $7,700. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) Required: 1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Nov 02 Record purchase of 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. 2. Nov 03 Record payment of cash for freight charges related to the November 2 purchase, $320. 3. Nov 09 Record return of 16 defective units from the November 2 purchase and receive credit. 4. Nov 11 Record payment to Toad Inc. in full. 5. Nov !6 Record the sale of 100 units of inventory to customers on account, $12,600. 6. Nov 16 Record the sale of 100 units of inventory to customers on account, $12,600. 7. Nov 20 Record receipt of full payment from customers related to the sale on November 16. 8. Nov 21 Record purchase of 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. 9. Nov 24 Record the sale of 70 units of inventory to customers for cash, $7,700. 10. Nov 24 Record the cost of inventory sold.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1MP

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Question

At the beginning of November, Yoshi Inc.’s inventory consists of 64 units with a cost per unit of $96. The following transactions occur during the month of November.

November	2	Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30.
November	3	Pay cash for freight charges related to the November 2 purchase, $320.
November	9	Return 16 defective units from the November 2 purchase and receive credit.
November	11	Pay Toad Inc. in full.
November	16	Sell 100 units of inventory to customers on account, $12,600. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.]
November	20	Receive full payment from customers related to the sale on November 16.
November	21	Purchase 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30.
November	24	Sell 70 units of inventory to customers for cash, $7,700. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.)

Required:
1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. Nov 02