Silverin Gifts Inc had the following transactions related to purchases
Silverin Gifts, Inc. had the following transactions related to purchases and sales of merchandise for the last month. The selling price of silver plates was $120 each, with a credit term of 2/10, n/30. All purchases were on credit, with a term of 2/10, n/30.
Mar 5 Purchased 25 silver plates at $55 each.
Mar 7 Sold 15 silver plates to Botan, Inc.
Mar 10 Purchased 20 silver plates at $58 each.
Mar 15 Sold 10 silver plates to Zenith Co.
Mar 17 Zenith returned 5 silver plates to Silverin.
Mar 21 Purchased 40 silver plates at $60 each.
Mar 25 Sold 12 silver plates to Raj Co.
Mar 30 Sold 15 silver plates to Kito Co.
On March 1, Silverin had 5 silver plates in inventory, with a total cost of $260.
Requirements
1. Calculate the ending inventory and cost of goods sold, using a perpetual inventory system:
(a) FIFO
(b) Average cost
2. Calculate the ending inventory and cost of goods sold, using a periodic inventory system:
(a) FIFO
(b) Average cost
3. Prepare the journal entries, using a perpetual inventory system:
(a) FIFO
(b) Average cost
4. Calculate the ending inventory and cost of goods sold, assuming Silverin uses the specific-identification method. Silverin provided the following additional information:
• Mar 7 sale: all units were taken from the Mar 5 purchase.
• Mar 15 sale: 5 units were taken from the beginning inventory, 5 units from the Mar 10 purchase
• Mar 17 sales return: 5 units were returned to the March 10 purchase
• Mar 25 sale: all units were taken from the Mar 21 purchase
• Mar 30 sale: all units were taken from the Mar 21 purchase
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