Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.
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 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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Topic Video
Question
Washington
Cycles started
January
with
5
bicycles that cost
$48
each. On
January 16,
Washington
purchased
30
bicycles at
$55
each. On
January 31,
Washington
sold
13
bicycles for
$100
each.Requirements
|
1.
|
Prepare
Washington
Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that
Washington
sold
3
bicycles that cost
$48
each and
10
bicycles that cost
$55
each. |
|
2.
|
Journalize the
January 16
purchase of merchandise inventory on account and the
January 31
sale of merchandise inventory on account. |
Requirement 1. Prepare
Washington
Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that
Washington
sold
3
bicycles that cost
$48
each and
10
bicycles that cost
$55
each.Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first. Abbreviation used: QTY = Quantity; Tot. = Total)
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