Use perpetual system Gina Corporation is a retailer that operates in Jakarta. Gina Corp. uses theperpetual inventory method. You are provided with the following information forGina Corp for the month ended February 2021.Unit Cost orDateDescriptionQuantitySelling PriceFeb-01Beginning Inventory30$25Feb-06Purchase22035Feb-08Sales12050Feb-10Sales Return1550Feb-15Purchase9036Feb-16Purchase Return1036Feb-20Sales8052Feb-21Purchase8537Feb-25Sales7553Feb-26Sales Return853Feb-27Purchase5038Instructions1. Compute the Cost of Goods Sold, Ending Inventory, and Gross Profit using thefollowing cost flow assumptions (no rounding):а.FIFOb.Average-costing2. Compare results between the two cost flow assumptions

The inventory of an organization can be valued using various methods such as First In First Out,…

Feb-16 Purchase Return 10 36 Feb-20 Sales 80 52 Feb-21 Purchase 85 37 Feb-25 Sales 75 53 Feb-26 Sales Return 8 53 Feb-27 Purchase 50 38 Instructions 1. Compute the Cost of Goods Sold, Ending Inventory, and Gross Profit using the

Feb-16 Purchase Return 10 36 Feb-20 Sales 80 52 Feb-21 Purchase 85 37 Feb-25 Sales 75 53 Feb-26 Sales Return 8 53 Feb-27 Purchase 50 38 Instructions 1. Compute the Cost of Goods Sold, Ending Inventory, and Gross Profit using the

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Use perpetual system

Gina Corporation is a retailer that operates in Jakarta. Gina Corp. uses the
perpetual inventory method. You are provided with the following information for
Gina Corp for the month ended February 2021.
Unit Cost or
Date
Description
Quantity
Selling Price
Feb-01
Beginning Inventory
30
$25
Feb-06
Purchase
220
35
Feb-08
Sales
120
50
Feb-10
Sales Return
15
50
Feb-15
Purchase
90
36
Feb-16
Purchase Return
10
36
Feb-20
Sales
80
52
Feb-21
Purchase
85
37
Feb-25
Sales
75
53
Feb-26
Sales Return
8
53
Feb-27
Purchase
50
38
Instructions
1. Compute the Cost of Goods Sold, Ending Inventory, and Gross Profit using the
following cost flow assumptions (no rounding):
а.
FIFO
b.
Average-costing
2. Compare results between the two cost flow assumptions

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