Exercise 4-7A (Algo) Determining the cost of inventory LO 4-2, 4-3, 4-4 For each of the following cases determine the ending balance in the inventory account. (Hint: First, determine the total cost of inventory available for sale. Next, subtract the cost of the inventory sold to arrive at the ending balance.) a. Jill's Dress Shop had a beginning balance in its inventory account of $45,500. During the accounting period, Jill's purchased $91,500 of inventory, returned $6,100 of inventory, and obtained $860 of purchases discounts. Jill's incurred $1,220 of transportation-in cost and $710 of transportation-out cost. Salaries of sales personnel amounted to $36,500. Administrative expenses amounted to $41,100. Cost of goods sold amounted to $93,300. b. Ken's Bait Shop had a beginning balance in its inventory account of $10,200. During the accounting period, Ken's purchased $45,700 of inventory, obtained $1,420 of purchases allowances, and received $470 of purchases discounts. Sales discounts amounted to $750. Ken's incurred $1,120 of transportation-in cost and $370 of transportation-out cost. Selling and administrative cost amounted to $13,400. Cost of goods sold amounted to $36,100. Cost of goods available for sale Ending Inventory Jill's Dress Shop Ken's Bait Shop
Exercise 4-7A (Algo) Determining the cost of inventory LO 4-2, 4-3, 4-4 For each of the following cases determine the ending balance in the inventory account. (Hint: First, determine the total cost of inventory available for sale. Next, subtract the cost of the inventory sold to arrive at the ending balance.) a. Jill's Dress Shop had a beginning balance in its inventory account of $45,500. During the accounting period, Jill's purchased $91,500 of inventory, returned $6,100 of inventory, and obtained $860 of purchases discounts. Jill's incurred $1,220 of transportation-in cost and $710 of transportation-out cost. Salaries of sales personnel amounted to $36,500. Administrative expenses amounted to $41,100. Cost of goods sold amounted to $93,300. b. Ken's Bait Shop had a beginning balance in its inventory account of $10,200. During the accounting period, Ken's purchased $45,700 of inventory, obtained $1,420 of purchases allowances, and received $470 of purchases discounts. Sales discounts amounted to $750. Ken's incurred $1,120 of transportation-in cost and $370 of transportation-out cost. Selling and administrative cost amounted to $13,400. Cost of goods sold amounted to $36,100. Cost of goods available for sale Ending Inventory Jill's Dress Shop Ken's Bait Shop
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 63E: ( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records...
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Exercise 4-7A (Algo) Determining the cost of inventory LO 4-2, 4-3, 4-4
For each of the following cases determine the ending balance in the inventory account. (Hint. First, determine the total cost of
inventory available for sale. Next, subtract the cost of the inventory sold to arrive at the ending balance.)
a. Jill's Dress Shop had a beginning balance in its inventory account of $45,500. During the accounting period, Jill's purchased
$91,500 of inventory, returned $6,100 of inventory, and obtained $860 of purchases discounts. Jill's incurred $1,220 of
transportation-in cost and $710 of transportation-out cost. Salaries of sales personnel amounted to $36,500. Administrative
expenses amounted to $41,100. Cost of goods sold amounted to $93,300.
Saved
b. Ken's Bait Shop had a beginning balance in its inventory account of $10,200. During the accounting period, Ken's purchased.
$45,700 of inventory, obtained $1,420 of purchases allowances, and received $470 of purchases discounts. Sales discounts
amounted to $750. Ken's incurred $1,120 of transportation-in cost and $370 of transportation-out cost. Selling and administrative
cost amounted to $13,400. Cost of goods sold amounted to $36,100.
Cost of goods available for sale
Ending Inventory
Jill's Dress
Shop
Ken's Bait
Shop
Hel
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