CMR Stationery located in Marabella, Trinidad, sells a variety of school supplies including several brands of calculators. The business began the first quarter (January to March) of 2018 with 20 (Casio smart) calculators at a total cost of $124,800. During the quarter, the company completed the following transactions relating to the “Casio smart” calculators. January 8: 105 calculators were purchased at a cost of $6,140 each. In addition, the business paid a freight charge of $310 cash on each calculator to have the inventory shipped from the point of purchase to their warehouse. January 31: The sales for January were 85 calculators which yielded total sales revenue of $809,030. (25 of these units were sold on account to longstanding customers) February 4: A new batch of 70 calculators was purchased at a total cost of $486,500 February 10: 6 of the instruments purchased on February 4 were returned to the supplier, as they were not of the model ordered. February 28: During the month 62 calculators were sold at a price of $10,050 each. March 4: A customer, to whom 9 calculators were sold during the first business day of February, returned 2 of the instruments, as they were of another brand. March 10: Owing to an increased demand, a further 118 calculators were purchased at a cost of $7,800 each; these were subject to a trade discount of 2% each. March 31: 124 calculators were sold during March at a unit selling price of $11,060. March 31: An actual count of inventory was carried out which revealed that there were 35 units of that brand of merchandise in the storeroom. Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required: (A) Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method of inventory valuation to determine the company’s cost of goods sold for the quarter and the value of ending. (B) Given that selling, distribution and administrative costs associated with the Casio smart brand of calculators for the quarter were $34,840, $42,100 and $173,760 respectively, prepare an income statement for CMR Stationery (Casio smart) for the quarter ended March 31, 2018. (C) Journalize the transactions for the month of January, assuming the company uses a: - Periodic inventory system - Perpetual inventory system
CMR Stationery located in Marabella, Trinidad, sells a variety of school supplies
including several brands of calculators. The business began the first quarter (January
to March) of 2018 with 20 (Casio smart) calculators at a total cost of $124,800.
During the quarter, the company completed the following transactions relating to the
“Casio smart” calculators.
January 8: 105 calculators were purchased at a cost of $6,140 each. In addition, the
business paid a freight charge of $310 cash on each calculator to have the inventory
shipped from the point of purchase to their warehouse.
January 31: The sales for January were 85 calculators which yielded total sales
revenue of $809,030. (25 of these units were sold on account to longstanding
customers)
February 4: A new batch of 70 calculators was purchased at a total cost of
$486,500
February 10: 6 of the instruments purchased on February 4 were returned to the
supplier, as they were not of the model ordered.
February 28: During the month 62 calculators were sold at a price of $10,050 each.
March 4: A customer, to whom 9 calculators were sold during the first business day
of February, returned 2 of the instruments, as they were of another brand.
March 10: Owing to an increased demand, a further 118 calculators were purchased
at a cost of $7,800 each; these were subject to a trade discount of 2% each.
March 31: 124 calculators were sold during March at a unit selling price of $11,060.
March 31: An actual count of inventory was carried out which revealed that there
were 35 units of that brand of merchandise in the storeroom.
Unless otherwise stated, assume that all purchases were on
received
Required:
(A) Prepare a perpetual inventory record for this merchandise, using the first in, first
out (FIFO) method of
sold for the quarter and the value of ending.
(B) Given that selling, distribution and administrative costs associated with the Casio
smart brand of calculators for the quarter were $34,840, $42,100 and $173,760
respectively, prepare an income statement for CMR Stationery (Casio smart) for the
quarter ended March 31, 2018.
(C) Journalize the transactions for the month of January, assuming the company
uses a:
- Periodic inventory system
- Perpetual inventory system
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