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 5Purchased 25 silver plates at $55 each.

Mar 7Sold 15 silver plates to Botan, Inc.

Mar 10Purchased 20 silver plates at $58 each.

Mar 15Sold 10 silver plates to Zenith Co.

Mar 17 Zenith returned 5 silver plates to Silverin.

Mar 21Purchased 40 silver plates at $60 each.

Mar 25Sold 12 silver plates to Raj Co.

Mar 30Sold 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