Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows: Purchased Sold Balance in inventory Date Units Unit cost Total $ Units Unit cost Total $ Units Unit cost Total $ Jan. 1 200 $2 3 400 $3 8 400 $5 10 700 * 15 300 $7 20 300 ** 27 400 $7 Units were sold for the following amount: June 10 10 $11 June 27 20 $12 *for specific identification, units sold on June 10 came from: Opening inventory 0 Jan. 3 purchase 380 Jan. 8 purchase 320 700 **for specific identification, units sold on June 20 came from: Opening inventory 0 Jan. 3 purchase 0 Jan. 8 purchase 60 Jan. 15 purchase 240 300 Required: 1 Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: a. FIFO Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary.

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...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

100%

Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of January 2019, the number of gadgets purchased and sold was as follows:

	Purchased	Sold	Balance in inventory
Date	Units	Unit cost	Total $	Units		Unit cost	Total $	Units	Unit cost	Total $
Jan. 1								200	$2
3	400	$3
8	400	$5
10				700	*
15	300	$7
20				300	**
27	400	$7

Units were sold for the following amount:
	June 10	10	$11
	June 27	20	$12

*for specific identification, units sold on June 10 came from:
	Opening inventory		0
Jan. 3 purchase	380
Jan. 8 purchase	320
			700

**for specific identification, units sold on June 20 came from:
Opening inventory	0
Jan. 3 purchase	0
Jan. 8 purchase	60
Jan. 15 purchase	240
			300
Required:
1	Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions:

	a. FIFO

Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary.

	Goods Purchased	Cost of Goods Sold	Balance in Inventory
Date	Units	Unit Cost	Total $	Units	Unit Cost	Total $	Units	Unit Cost	Total $

Jan. 1							200	$2
3	400	$3

8	400	$5


10


15	300	$7



20



27	400	$7




	Total COGS

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions