Your answer is correct.
Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 50 units
that cost $34 each. During June, (1) the company purchased 150 units at $34 each, (2)
returned 6 units for credit, and (3) sold 125 units at $50 each.
Journalize the June transactions. (If no entry is required, select “No entry” for the account
titles and enter 0 for the amounts. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
(1)
Inventory
Accounts Pay
(2)
Accounts Pay
Inventory
(3)
Accounts Rec
Sales Revenu
(To record sales)
Cost of Goods
Inventory
(To record cost of goods sold)
Amsterdam Company uses a periodic inventory system. For April, when the company
sold 600 units, the following information is available.
Units
Unit Cost
Total Cost
April 1 inventory
250
$10
$ 2,500
April 15 purchase
400
12
4,800
April 23 purchase
350
13
4,550
1,000
$11,850
(a)
Your answer is correct.
Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)
Weighted average cost per unit
$
11.85
(b)
Your answer is correct.
Compute the April 30 inventory and the April cost of goods sold using the average-cost
method. (Round answers to 0 decimal places, e.g. 2,760.)
Ending inventory
$
4740
Cost of goods sold
$
7110
Your answer is correct.
Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years
follow.
Year Ended
December 31
Inventory at
Current-Year Cost
Price
Index
2013
$19,750
100
2014
22,140
108
2015
25,935
114
Compute the value of the 2014 and 2015 inventories using the dollar-value LIFO method.
2014
2015
Inventory under LIFO
$
20560
$
Craig Company asks you to review its December 31, 2014, inventory values and prepare the
necessary adjustments to the books. The following information is given to you.
1.
Craig uses the periodic method of recording inventory. A physical count reveals $234,890 of
inventory on hand at December 31, 2014.
2.
Not included in the physical count of inventory is $13,420 of merchandise purchased on
December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December
29 and arrived in January. The invoice arrived and was recorded on December 31.
3.
Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This
received it on January 3.
4.
Included in inventory was merchandise received from Dudley on December 31 with an invoice
price of $15,630. The merchandise was shipped f.o.b. destination. The invoice, which has not
yet arrived, has not been recorded.
was received and recorded on December 30.
6.
Included in inventory was $10,438 of inventory held by Craig on consignment from Jackel
Industries.
merchandise on January 5.
damaged.