om/courses/29482/assignments/32415066Question 1View PoliciesCurrent Attempt in ProgressBlossom Company had a beginning inventory balance on July 1 of 430 units at a cost of $2.90 each. During the monththe following inventory transactions took place:PurchasesSalesCost perPrice perUnitsDateunitDateunitUnits$3.00$5.90310July 101,480July 21,0405.90113.20136703.40285606.6062027Calculate the cost of goods available for sale and the number of units of ending inventory.$Cost of goods available for saleunitsNumber of units of ending inventoryLO

Question
Asked Nov 13, 2019
11 views

1)Calculate the cost of goods available for sale and the number of units of ending inventory.

2)Assume blossom use FIFO periodic.Calculate the cost of ending inventory, cost of the goods sold,and gross profit.

3)prepared journal entries to record the July 10 purchase and the July 11 sales using FIFO periodic and FIFO perpetual. Assume both the sales and purchase were for cash 

om/courses/29482/assignments/3241506
6
Question 1
View Policies
Current Attempt in Progress
Blossom Company had a beginning inventory balance on July 1 of 430 units at a cost of $2.90 each. During the month
the following inventory transactions took place:
Purchases
Sales
Cost per
Price per
Units
Date
unit
Date
unit
Units
$3.00
$5.90
310
July 10
1,480
July 2
1,040
5.90
11
3.20
13
670
3.40
28
560
6.60
620
27
Calculate the cost of goods available for sale and the number of units of ending inventory.
$
Cost of goods available for sale
units
Number of units of ending inventory
LO
help_outline

Image Transcriptionclose

om/courses/29482/assignments/3241506 6 Question 1 View Policies Current Attempt in Progress Blossom Company had a beginning inventory balance on July 1 of 430 units at a cost of $2.90 each. During the month the following inventory transactions took place: Purchases Sales Cost per Price per Units Date unit Date unit Units $3.00 $5.90 310 July 10 1,480 July 2 1,040 5.90 11 3.20 13 670 3.40 28 560 6.60 620 27 Calculate the cost of goods available for sale and the number of units of ending inventory. $ Cost of goods available for sale units Number of units of ending inventory LO

fullscreen
check_circle

Expert Answer

Step 1

1)

 

Calculation of cost of goods available for sales and number of units of ending inventory:

 

A
C
E
Cost (S)
Total cost (S)
Particulars
Units
Beginning balance
July. 1
2
-C2*D2
-С3"D3
-C4*D4
-C5*D5
430
2.9
|Purchase
Purchase
|Purchase
1480
10
670
3.2
13
4
620
3.4
27
5
Goods available for
|=SUM(C2:C5)
-SUM(E2:E5)
C7*D7
6 sales (S)
7 July. 2
310
1040
Sales
5.9
5.9
6.6
|=SUM(C7:C9)| =SUM(D7:D9) =SUM(E7:E9)
Sales
-C8 *D8
11
-C9*D9
Sales
560
28
9
10 Total sales
11 Ending Inventory
-C6-C10
help_outline

Image Transcriptionclose

A C E Cost (S) Total cost (S) Particulars Units Beginning balance July. 1 2 -C2*D2 -С3"D3 -C4*D4 -C5*D5 430 2.9 |Purchase Purchase |Purchase 1480 10 670 3.2 13 4 620 3.4 27 5 Goods available for |=SUM(C2:C5) -SUM(E2:E5) C7*D7 6 sales (S) 7 July. 2 310 1040 Sales 5.9 5.9 6.6 |=SUM(C7:C9)| =SUM(D7:D9) =SUM(E7:E9) Sales -C8 *D8 11 -C9*D9 Sales 560 28 9 10 Total sales 11 Ending Inventory -C6-C10

fullscreen
Step 2

Results of formulas used in excel sheet is as follows:

 

Thus, the cost of goods available for sales is $9,939 and number of units of ending inventory is 1,290 units.

 

C D E
Cost Total cost
(S)
A
В
Particulars Units
(S)
1
Beginning
balance
Purchase
Purchase
Purchase
July. 1
2
1247
430
2.9
1480
4440
10
3
3
13
670
3.2
2144
620 3.4
2108
27
Goods available
6 for sales ($)
7 July. 2
9939
3200
310
1040
6.6
1910 18.4
1290
1829
6136
Sales
5.9
Sales
Sales
8
11
5.9
28
560
9
3696
10 Total sales
11 Ending Inventory
11661
Ln
help_outline

Image Transcriptionclose

C D E Cost Total cost (S) A В Particulars Units (S) 1 Beginning balance Purchase Purchase Purchase July. 1 2 1247 430 2.9 1480 4440 10 3 3 13 670 3.2 2144 620 3.4 2108 27 Goods available 6 for sales ($) 7 July. 2 9939 3200 310 1040 6.6 1910 18.4 1290 1829 6136 Sales 5.9 Sales Sales 8 11 5.9 28 560 9 3696 10 Total sales 11 Ending Inventory 11661 Ln

fullscreen
Step 3

2) Calculation of cost of ending inventory, cost of good...

C D
B
E
G
A
H
K
Purchases
Cost of goods sold
Cost per
Balance
1
FIFO
Cest per Tetal (S)
Units
unit (S
Cost per
Total (5)
Total (S)
Date
Particalars
Usits
Units
unit (S)
unit (S)
2.9
13
2.9
-DS
Beginning
Sales
Purchase
|430
-13-F4
14
3 37073
4 43648
F4°G4
-14*34
I5 J5
16 36
310
-J3
1480 3
CS DS
5 43656
6
CS
Sale
F7 G7
F8 GS
-15
1040-F7
J5
16
7 43657
16-F8
18 18
-19 19
110 J10
-111 311
-112J12
3
-J8
D9
J9
8
Parchase
670
3.2
C9 D9
-IS
-C9
9 43659
10
Parchase
C11 DI1
19
-110
620
3.4
11 43673
-J10
D11
12
C11
113 313
13
F14 G14
Sale
560
-J11
14 43674
112
J12
113
J13
SUM(H3:H16)-115 116
-115 J15
116 J16
|-к15+K16
15
16
Ending inventory
17 43677
SUM(F3:F16)
18
Calealation of gross profit
11661
ЕH1Z
-В20-B21
19
20 Sales
21 Less: cost of goods sold
22 Gross profit
help_outline

Image Transcriptionclose

C D B E G A H K Purchases Cost of goods sold Cost per Balance 1 FIFO Cest per Tetal (S) Units unit (S Cost per Total (5) Total (S) Date Particalars Usits Units unit (S) unit (S) 2.9 13 2.9 -DS Beginning Sales Purchase |430 -13-F4 14 3 37073 4 43648 F4°G4 -14*34 I5 J5 16 36 310 -J3 1480 3 CS DS 5 43656 6 CS Sale F7 G7 F8 GS -15 1040-F7 J5 16 7 43657 16-F8 18 18 -19 19 110 J10 -111 311 -112J12 3 -J8 D9 J9 8 Parchase 670 3.2 C9 D9 -IS -C9 9 43659 10 Parchase C11 DI1 19 -110 620 3.4 11 43673 -J10 D11 12 C11 113 313 13 F14 G14 Sale 560 -J11 14 43674 112 J12 113 J13 SUM(H3:H16)-115 116 -115 J15 116 J16 |-к15+K16 15 16 Ending inventory 17 43677 SUM(F3:F16) 18 Calealation of gross profit 11661 ЕH1Z -В20-B21 19 20 Sales 21 Less: cost of goods sold 22 Gross profit

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Optima Company is a high-technology organization that produces a mass-storage system. The design of ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

question_answer

Q: Discontinue a Segment Product A has revenue of $195,700, variable cost of goods sold of $114,800, va...

A: Calculate the differential effect on income.

question_answer

Q: Bonnie is getting close to retirement and realizes she has three different IRA accounts at three dif...

A: Generally, Bonnie cannot make more than one rollover from the same IRA within a 1-year period. She a...

question_answer

Q: Matchlessly, Inc., was organized in 2017. At December 31, 2017, the company’sBalance sheet reported ...

A: 1. Prepare journal entries.

question_answer

Q: I need helo solving this problem

A:  Calculate the direct labor rate, efficiency, and spending variances.

question_answer

Q: Analyze Star Stream's cost-vol ume-profit relationships Star Stream is a subscription-based video st...

A: (a) The break-even number of subscribers is 37,500,000.

question_answer

Q: Coronado Industries incurs the following costs to produce 8600 units of a subcomponent: $7224 Direct...

A: A technique which is used when the decision regarding choosing one of the alternatives is to be take...

question_answer

Q: Weightless Inc. produces a small and large version of its popular electronic scale. The anticipated ...

A: Production budget computes the quantity of products to be produced in order to meet the sales requir...

question_answer

Q: Harley Co. uses the conventrional retail method to estimate ending inventories.  The following data ...

A: In conventional retail Inventory method is also called lower of cost or market approach. In this met...