Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
EXERCISES (CONTINUED)
15B-6.
The cost of inventory for Sue Company is $27,395.
15B-7. Retail Method
Goods Available for Sale
Cost
Retail
Beginning Inventory
$ 58,900.00
$ 74,400.00
Net Purchases
255,800.00
405,400.00
Cost of Goods Available for Sale
$314,700.00
$479,800.00
Cost Ratio 65.59%
Net Sales at Retail
228,600.00
Ending Inventory at Retail
$251,200.00
Ending Inventory at Cost
$164,762.08
15B-8. Gross Profit Method
Goods Available for Sale
Inventory, January 1, 201X
$33,000.00
Net Purchases
67,400.00
Cost of Goods Available for Sale
$100,400.00
Less: Estimated Cost of Goods Sold:
Net Sales
$110,000.00
Cost Percentage
59%
Estimated Cost of Goods Sold
64,900.00
Estimated Inventory January 31, 201X
$35,500.00
PROBLEM 15A-1
GENERAL JOURNAL
PAGE 3
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Jun.
5
Merchandise Inventory
2
1
0
0
00
Accounts Payable
2
1
0
0
00
6
Accounts Receivable, Tommy Dorsey
9
5
00
Sales
9
5
00
6
Cost of Goods Sold
5
8
00
Merchandise Inventory
5
8
00
8
Accounts Payable
3
0
0
00
Merchandise Inventory
3
0
0
00
9
Cash
1
8
5
00
Sales
1
8
5
00
9
Cost of Goods Sold
8
7
00
Merchandise Inventory
8
7
00
9
Sales Returns and Allowances
8
00
Accounts Receivable, Tommy Dorsey
8
00
9
Merchandise Inventory
4
00
Cost of Goods Sold
4
00
10
Merchandise Inventory
6
0
0
00
Accounts Payable, KD Supply
6
0
0
00
12
Cash
8
7
00
Accounts Receivable, Tommy Dorsey
8
7
00
13
Cash
4
2
0
00
Sales
4
2
0
00
13
Cost of Goods Sold
3
1
0
00
Merchandise Inventory
3
1
0
00
PROBLEM 15A-2
SHEFFIELD ELECTRONICS
GENERAL JOURNAL
PAGE 2
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Feb.
10
Merchandise Inventory
114/√
9
4
4
00
Accounts Payable
201
9
4
4
00
11
Cash
101
2
5
2
00
Sales
401
2
5
2
00
11
Cost of Goods Sold
501
1
8
9
00
Merchandise Inventory
114/√
1
8
9
00
13
Cash
101
7
3
2
00
Sales
401
7
3
2
00
13
Cost of Goods Sold
501
6
0
2
00
Merchandise Inventory
114/√
6
0
2
00
15
Sales Returns and Allowances
402
1
6
8
00
Cash
101
1
6
8
00
15
Merchandise Inventory
114/√
1
2
6
00
Cost of Goods Sold
501
1
2
6
00
16
Accounts Payable
201
1
2
6
00
Merchandise Inventory
114/√
1
2
6
00
PROBLEM 15A-2 (CONTINUED)
Inventory Item KT88
Date
201X
Received
Sold
Balance
Units
Cost
Total
Units
Cost
Total
Units
Cost
Total
Feb. 1
6
21.00
$126.00
10
24
21.00
504.00
30
21.00
630.00
11
9
21.00
189.00
21
21.00
441.00
13
10
21.00
210.00
11
21.00
231.00
15
(6)
(21.00)
(126.00)
17
21.00
357.00
16
(6)
(21.00)
(126.00)
11
21.00
231.00
Inventory Item EL34
Date
201X
Received
Sold
Balance
Units
Cost
Total
Units
Cost
Total
Units
Cost
Total
Feb. 1
24
18.00
$432.00
13
12
18.00
216.00
12
18.00
216.00
Inventory Item 12AX7
Date
201X
Received
Sold
Balance
Units
Cost
Total
Units
Cost
Total
Units
Cost
Total
Feb. 1
7
11.00
$7700
10
40
11.00
440.00
47
11.00
517.00
13
16
11.00
176.00
31
11.00
341.00
PROBLEM 15A-2 (CONTINUED)
GENERAL LEDGER
CASH
ACCOUNT NO. 101
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Feb.
11
GJ2
2
5
2
00
2
5
2
00
13
GJ2
7
3
2
00
9
8
4
00
15
GJ2
1
6
8
00
8
1
6
00
MERCHANDISE INVENTORY
ACCOUNT NO. 114
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Nov.
1
Beginning Balance
–
6
3
5
00
10
GJ2
9
4
4
00
1
5
7
9
00
11
GJ2
1
8
9
00
1
3
9
0
00
13
GJ2
6
0
2
00
7
8
8
00
15
GJ2
1
2
6
00
9
1
4
00
16
GJ2
1
2
6
00
7
8
8
00
ACCOUNTS PAYABLE
ACCOUNT NO. 201
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Feb.
10
GJ2
9
4
4
00
9
4
4
00
16
GJ2
1
2
6
00
8
1
8
00
SALES
ACCOUNT NO. 401
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Feb.
11
GJ2
2
5
2
00
2
5
2
00
13
GJ2
7
3
2
00
9
8
4
00
PROBLEM 15A-2 (CONCLUDED)
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 402
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Feb.
15
GJ2
1
6
8
00
1
6
8
00
COST OF GOODS SOLD
ACCOUNT NO. 501
Date
201X
Explanation
Post
Debit
Credit
Balance
Debit
Credit
Feb.
11
GJ2
1
8
9
00
1
8
9
00
13
GJ2
6
0
2
00
7
9
1
00
15
GJ2
1
2
6
00
6
6
5
00
PROBLEM 15A-3
a. FIFO
Date
Received
Sold
Balance
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Jan.
1
798
8
00
$6,384
00
Mar.
8
496
8
00
3,968
00
302
8
00
2,416
00
Apr.
15
218
6
00
1,308
00
302
8
00
218
6
00
3,724
00
Oct.
5
302
8
00
2,416
00
52
6
00
312
00
166
6
00
996
00
Nov.
12
800
11
00
8,800
00
166
6
00
800
11
00
9,796
00
Nov.
30
166
6
00
996
00
234
11
00
2,574
00
566
11
00
6,226
00
Dec.
31
706
12
00
8,472
00
566
11
00
706
12
00
14,698
00
b. LIFO
Date
Received
Sold
Balance
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Units
Cost per
Unit
Total
Jan.
1
798
8
00
$6,384
00
Mar.
8
496
8
00
3,968
00
302
8
00
2,416
00
Apr.
15
218
6
00
1,308
00
302
8
00
218
6
00
3,724
00
Oct.
5
218
6
00
1,308
00
136
8
00
1,088
00
166
8
00
1,328
00
Nov.
12
800
11
00
8,800
00
166
8
00
800
11
00
10,128
00
Nov.
30
400
11
00
4,400
00
166
8
00
400
11
00
5,728
00
Dec.
31
706
12
00
8,472
00
166
8
00
400
11
00
706
12
00
14,200
00
PROBLEM 15A-4
(a) FIFO
(b) LIFO
(c) Weighted-Average
Cost of good available for sale
$ 86,210
$ 86,210
$ 86,210
Less: Ending inventory
30,420
19,300
25,080
Cost of goods sold
$ 55,790
$ 66,910
$ 61,130
PROBLEM 15A-5
Retail Method
Cost
Retail
Goods Available for Sale
Beginning Inventory
$16
8
0
0
00
$32
3
0
0
00
Net Purchases
110
6
0
0
00
195
2
0
0
00
Cost of Goods Available for Sale
$127
4
0
0
00
$227
5
0
0
00
Cost ratio 56.0%
Net Sales at Retail
191
0
0
0
00
Ending Inventory at Retail
$36
5
0
0
00
Ending Inventory at Cost
$20
4
4
0
00
PROBLEM 15A-6
Gross Profit Method
Cost
Retail
Gross Profit Method
Cost of Goods Available for Sale:
Inventory January 1, 201X
$38
8
0
0
00
Net Purchases
75
8
0
0
00
Cost of Goods Available for Sale
114
6
0
0
00
Less: Estimated Cost of Goods Sold:
Net Sales
$125
8
0
0
00
Cost Percentage
7
5
%
Estimated Cost of Goods Sold
94
3
5
0
00
Estimated Inventory January 31, 201X
$20
2
5
0
00
Copyright © 2016 Pearson Education, Inc.
15-20
SOLUTIONS TO SET B PROBLEMS
PROBLEM 15B-1
GENERAL JOURNAL
PAGE 3
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Apr.
5
Merchandise Inventory
2
2
0
0
00
Accounts Payable
2
2
0
0
00
6
Accounts Receivable, Tommy Dube
1
0
0
00
Sales
1
0
0
00
6
Cost of Goods Sold
4
7
00
Merchandise Inventory
4
7
00
8
Accounts Payable
2
0
0
00
Merchandise Inventory
2
0
0
00
9
Cash
1
5
5
00
Sales
1
5
5
00
9
Cost of Goods Sold
1
1
6
00
Merchandise Inventory
1
1
6
00
9
Sales Returns and Allowances
1
0
00
Accounts Receivable/Tommy Dube
1
0
00
9
Merchandise Inventory
3
00
Cost of Goods Sold
3
00
10
Merchandise Inventory
6
0
0
00
Accounts Payable, RJ Supply
6
0
0
00
12
Cash
9
0
00
Accounts Receivable, Tommy Dube
9
0
00
13
Cash
3
4
0
00
Sales
3
4
7
0
00
13
Cost of Goods Sold
2
7
0
00
Merchandise Inventory
2
7
0
00
