Problem 1 Beginning inventory and purchases for September for Elizabeth Co. are shown below. Unit price...

Transcribed Image Text:

Problem 1 Beginning inventory and purchases for September for Elizabeth Co. are shown below. Unit price $ 82 $ 89 $ 92 $104 $108 Quantity Date Beginning Sept. 2 Sept. 11 Sept. 24 Sept. 26 400 800 650 840 960 a. The company sold 1,400 units on Sept. 17 and uses a perpetual inventory system. Compute the amount of cost of goods sold and ending inventory under each of the following cost flow methods. Cost of Goods Sold Ending Inventory (1) FIFO (2) LIFO (3) Average b. If the 1,400 units were sold for $200 each, prepare the journal entry or entries required for the sale and cost of goods sold on Sept. 15, using your answer above for average cost. Problem 2 Fulton Corporation reported the following payroll-related costs for April. Gross pay of employees Social security & Medicare tax withheld State income tax withheld Federal income tax withheld Retirement contributions withheld Group health insurance payments withheld Group health insurance benefits (paid by company) Retirement benefits (paid by company) Federal and state unemployment taxes $540,000 32,000 47,000 65,000 39,000 28,000 41,000 24,000 9,000 The company also paid Social Security & Medicare taxes equal to the amount withheld from employees paychecks (to “match" those amounts). Required: Prepare the payroll journal entries for April. Problem 1 Beginning inventory and purchases for September for Elizabeth Co. are shown below. Unit price $ 82 $ 89 $ 92 $104 $108 Quantity Date Beginning Sept. 2 Sept. 11 Sept. 24 Sept. 26 400 800 650 840 960 a. The company sold 1,400 units on Sept. 17 and uses a perpetual inventory system. Compute the amount of cost of goods sold and ending inventory under each of the following cost flow methods. Cost of Goods Sold Ending Inventory (1) FIFO (2) LIFO (3) Average b. If the 1,400 units were sold for $200 each, prepare the journal entry or entries required for the sale and cost of goods sold on Sept. 15, using your answer above for average cost. Problem 2 Fulton Corporation reported the following payroll-related costs for April. Gross pay of employees Social security & Medicare tax withheld State income tax withheld Federal income tax withheld Retirement contributions withheld Group health insurance payments withheld Group health insurance benefits (paid by company) Retirement benefits (paid by company) Federal and state unemployment taxes $540,000 32,000 47,000 65,000 39,000 28,000 41,000 24,000 9,000 The company also paid Social Security & Medicare taxes equal to the amount withheld from employees paychecks (to “match" those amounts). Required: Prepare the payroll journal entries for April.

Answer rating: 100% (QA)

Answer Problem1 Perpetual FIFO Purchases Cost of Goods Sold Inventory on Hand Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantit... View the full answer