I1. Calculations (10 points 1. Beginning inventory, purchases, and sales data fo
ID: 2602400 • Letter: I
Question
I1. Calculations (10 points 1. Beginning inventory, purchases, and sales data for USB Cash disks are as follows: Nov1 Inventory 140 units at $25 Nov 6 Credit Sales 60 units at $30 (Selling price) Nov 14 Purchase 100 units at $22 Nov 19 Credit Sales 80 units at $30 (Selling price) Nov 25 Credit Sales 60 units at $30 (Selling price) Nov 30 Purchase 70 units at $20 a. Record the journal entries of the transactions on Nov 6 (Assuming the purchase is on credit, 4 points) b. How much is the merchandise sold using periodic FIFO method? (Show the calculations, 4 points c. How much is the gross profit in November? (2 points)Explanation / Answer
a Date Account Titles Debit Credit Nov 6 Accounts Recevable $ 1,800 Sales Revenue $ 1,800 (To record sales on account) Cost of goods sold $ 1,500 Inventory $ 1,500 (To record cost of goods sold) No of units b Sales 60 Sales 80 Sales 60 Total sales units 200 Using periodic fifo Nov 1 140 $ 25.00 $ 3,500 Nov 14 60 $ 22.00 $ 1,320 Merchandise sold $ 4,820 Units rate Amount c Sales 200 $30 $6,000 Less: Cost of goods sold 4,820 Gross profit $1,180