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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