Project #75087 - accounting

At the beginning of November, Yoshi Inc.’s inventory consists of 61 units with a cost per unit of $96. The following transactions occur during the month of November.

 

 

November 2

Purchase 79 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30.

November 3

Pay freight charges related to the November 2 purchase, $130.

November 9

Return 14 defective units from the November 2 purchase and receive credit.

November 11

Pay Toad Inc. in full.

November 16

Sell 100 units of inventory to customers on account, $12,900. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $2 per unit for freight less $1 per unit for the purchase discount, or $101 per unit.]

November 20

Receive full payment from customers related to the sale on November 16.

November 21

Purchase 59 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30.

November 24

Sell 70 units of inventory to customers for cash, $11,900.

 

 

Required:

1.

Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions.

2.

Assuming for preparing financial statements that Yoshi Inc. reports inventory using LIFO, record the LIFO adjustment.

3-Suppose by the end of November that the remaining inventory is estimated to have a market value per unit of $82, record any necessary adjustment for the lower-ofcost-or-market method after the LIFO adjustment.

4-

Prepare the top section of the multiple-step income statement through gross profit for the month of November after the lower-of-cost-or-market adjustment.

 

Subject Business
Due By (Pacific Time) 06/28/2015 08:00 am
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