On December 1, 2017, Annalise Company had the account balances shown below. Debit Credit Cash $6,800 Accumulated...

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Accounting

On December 1, 2017, Annalise Company had the account balancesshown below.
Debit Credit Cash $6,800 Accumulated Depreciation—Equipment$1,400
Accounts Receivable 3,900 Accounts Payable 2,900
Inventory 1,500 * Owner’s Capital 29,700
*(3,000 x $0.50)
Equipment 21,800
$34,000 $34,000
The following transactions occurred during December:
Dec. 3 Purchased 4,200 units of inventory on account at a costof $0.70 per unit.
Dec. 5 Sold 4,700 units of inventory on account for $0.92 perunit. (It sold 3,000 of the $0.50 units and 1,700 of the$0.70.)
Dec. 7 Granted the December 5 customer $92 credit for 100 unitsof inventory returned costing $100. These units were returned toinventory.
Dec. 17 Purchased 2,300 units of inventory for cash at $0.78each. 22 Sold 2,100 units of inventory on account for $0.97 perunit. (It sold 2,100 of the $0.70 units.) Adjustment data: 1.Accrued salaries payable $400. 2. Depreciation $200 per month.
(e) Compute ending inventory and cost of goods sold under FIFO,assuming Annalise Company uses the periodic inventory system.
Ending Inventory ?
Cost of Goods Sold ?
(f) Compute ending inventory and cost of goods sold under LIFO,assuming Annalise Company uses the periodic inventory system.
Ending Inventory ?
Cost of Goods Sold ?

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3.6 Ratings (494 Votes)

FIFO Units Price Amount Balance Closing stock Opening inventory 3000 050 150000 3000 Purchases 4200 070 294000 7200 Sales 4700 2500 175000 Sales return 100 2600 182000 See Answer

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On December 1, 2017, Annalise Company had the account balancesshown below.Debit Credit Cash $6,800 Accumulated Depreciation—Equipment$1,400Accounts Receivable 3,900 Accounts Payable 2,900Inventory 1,500 * Owner’s Capital 29,700*(3,000 x $0.50)Equipment 21,800$34,000 $34,000The following transactions occurred during December:Dec. 3 Purchased 4,200 units of inventory on account at a costof $0.70 per unit.Dec. 5 Sold 4,700 units of inventory on account for $0.92 perunit. (It sold 3,000 of the $0.50 units and 1,700 of the$0.70.)Dec. 7 Granted the December 5 customer $92 credit for 100 unitsof inventory returned costing $100. These units were returned toinventory.Dec. 17 Purchased 2,300 units of inventory for cash at $0.78each. 22 Sold 2,100 units of inventory on account for $0.97 perunit. (It sold 2,100 of the $0.70 units.) Adjustment data: 1.Accrued salaries payable $400. 2. Depreciation $200 per month.(e) Compute ending inventory and cost of goods sold under FIFO,assuming Annalise Company uses the periodic inventory system.Ending Inventory ?Cost of Goods Sold ?(f) Compute ending inventory and cost of goods sold under LIFO,assuming Annalise Company uses the periodic inventory system.Ending Inventory ?Cost of Goods Sold ?