Question: Aunt;- Milton Ltd uses the periodic inventory method and the following information was extracted from its inventory records for August: May 1 Beginning inventory 8

information was extracted from its inventory records for August: May 1 Beginning

Aunt;- Milton Ltd uses the periodic inventory method and the following information was extracted from its inventory records for August: May 1 Beginning inventory 8 units @ $12 7 Purchased 15 units @ $14 15 Sold 9 units 16 Purchased 10 units @ $15 21 Purchased 15 units @ $16 28 Sold 9 units Required: Calculate the cost of ending inventory at 31 August and the Cost of Goods Sold for August using the following methods: a) Weighted Average. (3 marks) b) First In First Out. (3 marks) Part 2. The following transactions occurred for Galaxy Ltd during September. 5/9 Purchased inventory on account from Moon Ltd of $3,000 and freight charges of $150 was added to the invoice. 10/9 Returned $500 of inventory to Mars Ltd. 15/9 Sold inventory to Venus Ltd on account for $4,000. The cost of sales was $3,200. Required: Prepare journal entries to record the above transactions, assuming that Galaxy Ltd uses a perpetual inventory system (ignore GST). (4 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

On January 1, 2019, Pat Company purchased 90% of the outstanding common stock of Solo Company for $236,000 cash. The balance sheet for Pat Company just before the acquisition of Solo Company stock,...

as soon as possible thx 0.058 Dupont Ltd uses a periodic inventory system has the following Beginning Inventory Purchase Purchase Date July 1 10 20 Units 8,000 13,000 5,000 Unit Cost $11 12 13 if...

Question 4 Inventories Humphrey s Ltd uses the periodic inventory method and had the following inventory information available: 1 - Jan Beginning Inventory - 4 0 units - units cost $ 4 . 1 0 - Total...

13. The Merchandise Inventory account had a balance of $45,000 on December 31, but a physical inventory taken on that date indicated that $44,400 was actually on hand. a. Merchandise Inventory 600...

. 14. Which of the following accounts is a control account with a subsidiary ledger? a. Merchandise Inventory d. b and c b. Accounts Receivable e. a, b, and c c. Accounts Payable 15. Which of the...

he ABC Co. uses the periodic inventory method, and the following information is available to answer questions 19 to 22. Beginning inventory 200 at $10 1st purchase 300 at $11 2nd purchase 300 at $12...

Question 6 Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company uses a periodic inventory system. Consider the following information: Date Description...

MULTIPLE CHOICES-COMPUT ATIONAL 1. AMG Manufacturing Company which uses the periodic inventory system showed the following transactions during the month of May Units Cost Date Units Purchased Units...

Hi, this is accounting questions can you solve for me please. thanks Practice Final Exam for Revision purposes Part A Problem Solving QUESTION 1 (10 marks) The following transactions occurred during...

Chapter 4 Contr 152 MULTIPLE CHOICES- THEORETICAL 6. 1. The costing method that considers materials on hand to be from the last ones purchased is: a. LIFO b. FIFO C. Moving average 7 . d. Specific...

Alternative Inventory Methods Frate Company was formed on December 1, 2018, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product...

What is substantial performance?

Investigate the properties of the polynomial equation f(x) = x + 5x6 +x4 - x + x - 2 = 0, by proceeding as follows. (a) By writing the fifth-degree polynomial appearing in the expression for f'(x) in...

Consider the block diagram in Figure 9.69. The plant transfer function is Utilize the Nyquist stability criterion to characterize the stability of the closed-loop system. a. The closed-loop system is...

Complete the table below for the missing variances. |(Click the icon to view the table.) Calculate the variances and identify whether the variance is favorable (F) or unfavorable (U). (b) Total...

Assume the following sales took place during 2019 for a variety of individual capital assets for Ron (all normal capital assets with gains subject to 0%, 15% or 20% tax rates): Property Purchase Date...

Factory Ledger Accounts, Journal Entries, and Trial Balances. The Colorado Manufacturing Company has a cost accounting system using both general and factory ledgers. On December 31, 19A, after...

Consider the following normalized relations for a database in a large retail store chain: STORE (StoreID, Region, ManagerID, SquareFeet) EMPLOYEE (EmployeeID, WhereWork, EmployeeName,...

3. An electron and a photon each have a wavelength of 2.0 . What are their (a) momenta and (b) total energies? (c) Compare the kinetic energies of the electron and the photon. 4. A nonrelativistic...

how can you evaluate training in the organization?.

8. Set a goal that you really want to achieve in the near future, lets say 12 years. How does this goal fit in relation to the form roles and values above? What role and what value was it that...

7. Fill out the form below. Only the most important roles and your basic values are to be filled.

10. Try to remember the last communication you entered into. How many times did you fill in information that the other person did not convey? How many times did you speak before the other person...