III. Calculations (10 points) Beginning inventory, purchases, and sales data for
ID: 2603048 • Letter: I
Question
III. Calculations (10 points) Beginning inventory, purchases, and sales data for USB flash disks are as follows: 1. Nov1 Nov 6 Nov 14 Nov 19 Nov 25 Nov 30 Inventory 140 units at $25 Credit Sales 60 units at $30 (Selling price) Purchase 100 units at $22 Credit Sales 80 units at $30 (Selling price) Credit Sales 60 units at S30 (Selling price) Purchase 70 units at $20 a. Record the journal entries of the transactions on Nov 6th (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
b.
Nov 1
1). Nov 6. 60 units sold = 140 units from beginning inventory of at $25 unit cost.
Cost of good sold = 60 * $25 = $1500
2). Nov 19.80 units sold = 80 units(140-60) beginning inventory of at $25 unit cost.
Cost of goods sold = 80* $25 = $2000
3). Nov 25. 60 units sold = 60 units from Nov 14 purchase at $22 unit cost
Cost of goods sold = 60* $22 = $1320
Total Cost of goods sold :-
=$1500 + $2000 + $1320 = $4820
Quantityof ending inventory :-
=Beginning inventory + Units purchased - Units sold
140 + 170 - 200 = 110 units
Cost of ending inventory :-
=Beginning inventory + cost of purchase - cost of goods sold
$3500 + $3600 - $4820= $2280
Date Transactions Units Sold Unit Cost Inventory UnitsNov 1
Beginning Inventory 140 $25 3500 Nov 6 Sales 60 $25 1500 Nov 14 Purchase 100 $22 2200 Nov 19 Sales 80 $25 2000 Nov 25 Sales 60 $22 1320 Nov 30 Purchase 70 $20 1400