Question 2 & 3 Acct 101

Beginning inventory, purchases, and sales data for personal organizers are as follows:

        Jan    1 Beginning Inventory                                        45 units @ $24

                    3           Sold                                                          35 units

                    8           Purchased                                              70 units @ $32

                 21           Sold                                                          65 units

                 30           Purchased                                              25 units @ $47

 

Instructions: 1 – Using the above transactions prepare the perpetual inventory record using each of the costing methods listed below. 2 – In the space provided below identify the ending inventory balance and cost of goods sold for June under each method.

 

a)    FIFO

b)    LIFO

c)    Weighted Average (Round unit cost to the nearest cent and total

                      costs to the nearest dollar)

 

 

 

 

 

 

 

 

 

FIFO

FIFO	Purchases			Cost of Goods Sold			Inventory On Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan 1							45	24	1080
Jan 3

Ending Inventory:

 

Cost of Goods Sold:

 

LIFO

LIFO	Purchases			Cost of Goods Sold			Inventory On Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost

Ending Inventory:

 

Cost of Goods Sold:

Weighted Average

Weighted Average	Purchases			Cost of Goods Sold			Inventory On Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost

Ending Inventory:

 

Cost of Goods Sold:

 

 

Problem 3 (14 points)

Lawlor Lawn Service had the following transactions in June.  Prepare journal entries for these transactions assuming Lawlor Lawn Service uses a perpetual inventory system.

 

Jun   2            Completed lawn service and received cash of $800

          5            Purchased 110 plants on account for inventory, $304, plus freight in

                                    of $15

          15          Sold 60 plants on account, $600

          17          Consulted with a client on landscaping design for a fee of $250 on

                                    account

          20          Purchased 120 plants on account for inventory, $384

21          Paid on account, $400

25          Sold 110 plants for cash, $990

Extra Credit for June 30^th transaction

30          Recorded the following adjusting entries

                           Depreciation, $30

                           Physical count of plant inventory, 30 plants

 

 

 

 

 

 

 

 

 

GENERAL JOURNAL
DATE		DESCRIPTION	REF	DEBIT	CREDIT