Brody Sports, is a sports shop that carries a range of sporting goods. The most popular selling items are all hockey related items. They carry a range of NHL replica jerseys and of course international teams. By far the biggest selling jersey is the Canadian jersey. Local teams purchase their jerseys from a range of jerseys they have on offer. A lot of customers pay in cash, but the teams that have accounts with the store can purchase on account, usually 

$2/10,$ net $30.$

The store manager ensures that the staff rotate the stock so that the older items are displayed at the front of the shelves and are sold first. When large orders are placed, the same system applies and Brody Sports uses a perpetual FIFO system to manage its inventory.

You have been hired as a book keeper to maintain the sales journal and keep a track of inventory using your knowledge of perpetual FIFO systems.

During the month of September the following transactions takes place. Brody Sports already has a stock of $40$ jerseys that had a cost price of $$25$ each, from last year. September tends to be a busy month as teams come in to buy jerseys for the new season.

$1-$Sep Sold $20$ jerseys for cash $($selling price $$125$ each$)$

$2-$Sep Purchases another $65$ jerseys at $$30$ each. Terms $2/10,$ net $30.$

$9-$Sep Sold another $30$ jerseys on account, $2/10$ net $30,$ to the West End Worblers. $($selling price $$120$ each$)$

$14-$Sep Paid for the purchase on sept $2$nd$.$

$17-$Sep Purchases another $50$ jerseys at $$33$ each. Terms $2/10,$ net $30.$

$21-$Sep Sold another $50$ jerseys on account, $2/10$ net $30,$ to the East Side Mainers. $($selling price $$115$ each$)$

$22-$Sep West end worblers, settled their account by paying for the purchase on the $9$th of sept in full.

$22-$Sep East side Mainers, returned $4$ defective jerseys, purchased on the $21$st$.$

$23-$Sep East side mainers, settled their account by paying for the reainder of the purchase on $21$st in full.

$24-$Sep sold another $5$ jerseys for cash $($selling price $$125$ each$)$

$29-$Sep stock account revealed, that there are only $32$ jerseys were in stock. Adjust inventory if needed.

NOTE: the inventory charts only go to the $24$th

a$)$ complete the following table to track cost of goods sold during the month. $($using FIFO method$)$

Date

purchase sales balance Quantity Unit cost Value Quantity Unit cost Value

Opening $40$ $$25$ $$1,000$

$1-$Sep $20$ $$25$ $$2025$ $$500$

$2-$Sep $65$ $$30$ $$8529$ $$2,450$

$9-$Sep $$5530$ $$1,650$ $$2025$ $$500$

$17-$Sep $50$ $$33$ $$10530$ $$3,150$ $$5530$ $$1,650$

$21-$Sep $50$ $$30$ $$155\mathrm{.}0030$ $$4,650$ $$530$ $$150$

$24-$Sep $5$ $$30$ $$150\mathrm{.}0030$ $$4,650$

adjusted inventory $$32\mathrm{.}0030$ $$960$

total cost of goods $=$$$2950$

b$)$ Journalise each transaction for the month, using the perpetual method.

Date Description Ref DR CR

$1-$Sep cash

sales revenue

cost of goods sold inventory

$2-$Sep merchandise inventory

sales discount

accounts payable

$9-$Sep accounts receivable

sales discount

sales revenue

$14-$Sep accounts payable

sales revenue

$17-$Sep merchandise inventory

sales discount

accounts payable

$21-$Sep accounts receivable

sales discount

cost of goods inventory

$22-$Sep cash

sales discount

acounts receivable

$22-$Sep sales return allowance

accounts receivable

$23-$Sep cash

sales discount

accounts receivable

$24-$Sep cash

sales revenue

$29-$Sep opening

adjusted inventory

c$)$ complete the  table to track cost of goods sold during the month. $($using Avearge method$)$

Date Purchases Sales Balance

Quantity Unit $,$cost Value $,$Quantity Unit $,$cost Value, Quantity Unit $,$cost Value

Answer rating: 100% (QA)

a Heres the completed table to track the cost of goods sold during the month using the FIFO method D... View the full answer