J & G sells a variety of school supplies from a store located at Red Mountain Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter.Using the FIFO method, the value of ending inventory after accounting for the transaction on May 1, 2009 is:a.797,000b.$782,000c.897,000d.697,000 Purchased 3,000 pencil cases on account at a cost of $110 each. Anadditional air freight charge of $2, as well as customs import charge of $3per case was incurred and paid. It is customary for J & G to include freightin as part of the cost of the units in their inventory record.During the month 1, 000 pencil cases were sold at a price of $160 each.April 10April 30May 1A new batch of 3,200 cases was purchased on account at a cost of $352,000.15 of the pencil cases purchased on April 10 were found to be defective andreturned to the supplier.The sales for May were 2,350 pencil cases at a unit selling price of $120.May 15May 28May 3110 of the pencil cases sold at the start of business on May 28 were returnedby the customer.

Formula: Cost per pencil = Total cost / Number of pencils

Answered: J & G sells a variety of school…

Principles of Accounting Volume 1

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ISBN:9781947172685

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Chapter6: Merchandising Transactions

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Problem 2PB: Record journal entries for the following transactions of Mason Suppliers. A. Sep. 8: Purchased 50...

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J & G sells a variety of school supplies from a store located at Red Mountain Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter.

Using the FIFO method, the value of ending inventory after accounting for the transaction on May 1, 2009 is:

797,000

$782,000

897,000

697,000

Purchased 3,000 pencil cases on account at a cost of $110 each. An
additional air freight charge of $2, as well as customs import charge of $3
per case was incurred and paid. It is customary for J & G to include freight
in as part of the cost of the units in their inventory record.
During the month 1, 000 pencil cases were sold at a price of $160 each.
April 10
April 30
May 1
A new batch of 3,200 cases was purchased on account at a cost of $352,000.
15 of the pencil cases purchased on April 10 were found to be defective and
returned to the supplier.
The sales for May were 2,350 pencil cases at a unit selling price of $120.
May 15
May 28
May 31
10 of the pencil cases sold at the start of business on May 28 were returned
by the customer.

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