Toy World began January with an inventory of 20 crates of toys that cost a total of $1,100.
Question # 00288124
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Updated on: 05/19/2016 10:16 PM Due on: 06/18/2016
Toy World began January with an inventory of 20 crates of toys that cost a total of $1,100. During the month, Toy World purchased and sold merchandise on account as follows: Purchase 1 30 crates @ $65
Purchase 2 70 crates @ $70
Sale 1 40 crates @ sale price of $100
Sale 2 75 crates @ sale price of $110
Toy World uses LIFO methodCash payments on account totaled $6,300. Operating expenses for the month were $3,600, with two-thirds paid in cash and the rest accrued as Accounts Payable. 1) Prepare a perpetual inventory record, at LIFO cost, for this merchandise. 2) Make journal entries to record Toy World's transactions.
Purchase 2 70 crates @ $70
Sale 1 40 crates @ sale price of $100
Sale 2 75 crates @ sale price of $110
Toy World uses LIFO methodCash payments on account totaled $6,300. Operating expenses for the month were $3,600, with two-thirds paid in cash and the rest accrued as Accounts Payable. 1) Prepare a perpetual inventory record, at LIFO cost, for this merchandise. 2) Make journal entries to record Toy World's transactions.
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Rating:
5/
Solution: Toy World began January with an inventory of 20 crates of toys that cost a total of $1,100.