For each of the following cases determine the ending balance in the inventory account. (Hint....

50.1K

Verified Solution

Question

Accounting

For each of the following cases determine the ending balance in the inventory account. (Hint. First, determine the total cost of inventory available for sale. Next, subtract the cost of the inventory sold to arrive at the ending balance.)
Required
a. Jill's Dress Shop had a beginning balance in its inventory account of $40,500. During the accounting period, Jill's purchased $76,500 of inventory, returned $5,100 of inventory, and obtained $760 of purchases discounts. Jill's incurred $1,020 of transportation-in cost and $610 of transportation-out cost. Salaries of sales personnel amounted to $31,500. Administrative expenses amounted to $36,100. Cost of goods sold amounted to $83,300.
b. Ken's Bait Shop had a beginning balance in its inventory account of $8,200. During the accounting period, Ken's purchased $37,700 of inventory, obtained $1,220 of purchases allowances, and received $370 of purchases discounts. Sales discounts amounted to $650. Ken's incurred $920 of transportation-in cost and $270 of transportation-out cost. Selling and administrative cost amounted to $12,400. Cost of goods sold amounted to $34,100.
\table[[,\table[[Jill's Dress],[Shop]],\table[[Ken's Bait],[Shop]]],[Cost of goods available for sale,,],[Ending Inventory,,]]
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students