Accounting records for Total Desserts, Inc., yield the following data for the year ended December 31, 2012
Question:
Inventory, Dec 31, 2011.................................................................................. $ 490
Purchases of inventory (on account)................................................................ 2,000
Sales of inventory—75% on account, 25% for cash........................................ 3,400
Inventory at the lower of FIFO cost or market, Dec 31, 2012 ........................ 620
Requirements
1. Journalize Total Desserts’ inventory transactions for the year under the periodic system. Show all amounts in thousands.
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in thousands). Show the computation of cost of goods sold.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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