Please help me with these questions. 1. Manufactured goods transferred out of wo

Question

Please help me with these questions.

1. Manufactured goods transferred out of work in process are reported as finished goods on the balance TRUE 2. The UFO inventory method will in the highest gross margin when costs are increasing in comparison to the specific identification, FIFO and weighted average inventory methods TRUE 3. A large retail department store probably would use the specific identification inventory costing method for most of the items in its inventory FALSE TRUE 4. The FIFO inventory method allocates the most recent inventory purchase costs to ending inventory FALSE TRUE 5. The LIFO inventory method aliocates the most recent inventory purchase costs to cost of goods sold. FALSE TRUE 6. During periods of decreasing prices, use of the FIFO method results in lower gross profit FALSE would use of the LIFO method. inventory than TRUE

Explanation / Answer

1 . Image to question 1 image not visible, hence could not be answered

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Journal

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Journal Entries

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Journal

Unsing Periodic Inventory system Jan 04 Accounts receivable 2800 Sales 2800 (80units sold @ $35each) Jan 10 Inventory 2340 Accounts Payable 2340 (90 units purc @ $26 each) Jan 22 Accounts receivable 1750 Sales 1750 (50units sold @ $35each) Jan 28 Accounts receivable 1050 Sales 1050 (30units sold @ $35each) Jan 30 Inventory 3240 Accounts Payable 3240 (120 units purc @ $27 each) Jan-31 Inventory- Ending 4280 Cost of goods sold* 4050 Purchases 5580 Inventory- Opening 2750 * [(5580 + 2,750) – 4280]

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Journal Entries

Unsing Perpetual Inventory system Jan 04 Accounts receivable 2800 Sales 2800 (80units sold @ $35each) Cost of goods sold 2000 Inventory 2000 (Cost of 80 units sold) Jan 10 Inventory 2340 Accounts Payable 2340 (90 units purc @ $26 each) Jan 22 Accounts receivable 1750 Sales 1750 (50units sold @ $35each) Cost of goods sold 1270 Inventory 1270 (Cost of 50 units sold) ( 30 units *25 +20units *26) Jan 28 Accounts receivable 1050 Sales 1050 (30units sold @ $35each) Cost of goods sold 780 Inventory 780 (Cost of 30 units sold) ( 30 units *26) Jan 30 Inventory 3240 Accounts Payable 3240 (120 units purc @ $27 each) Jan-31 No ending inventory entry to pass

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