Question

a. 15-JO b. $1,350 c. $1,375 . $1,150 28. Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning inventory 24 units @ $15 5 Sale 17 units 17 Purchase 10 units @ $20 30 Sale 8 units Assuming a perpetual inventory system and the first-in, first-out method, determine (a) the cost of the goods sold and (b) the inventory on September 30. 29. The units of Product Green-2 available for sale during the year were as follows: April 1 Inventory 15 units @ $30 June 16 Purchase 29 units @ $33 Sep. 28 Purchase 45 units @ $35 There are 17 units of the product in the physical inventory at September 30. The periodic inventory system is goods sold by (a) FIFO, (b) LIFO, and (c) average cost methods. 30. On the basis of the following data for Sanford Industries as of December 31, determine the value of the in market. Also, show how the inventory would appear on the balance sheet (assume that the cost was determine lower of cost or market to each inventory item. Commodity Inventory Quantity Cost per Unit Market Value per Unit $17 $19

Answer 1

25	Bank reconciliation on August 31
	Particulars	Amount ($)	Amount ($)
	Cash account balance in books		5080
	Add:
	Outstanding checks	715
	Supplies check	45
			760
	Less:
	Deposits in transit	1020
	Bank service charges	40
	Supplies check	90
			1150
	Balance as per Bank		4690

26	Journal
	Date	Description	Post. Ref.	Debit	Credit
	Sept 1.	Petty cash		350
		Cash			350
		To record establishment of petty cash fund
	Sept 30.	Petty cash		216
		Petty receipts			216
		To record receipt of postage and office supplies
		Petty expenses		436
		Petty cash			436
		To record petty expenses incurred

28	Particulars	Units	Rate	Value
	Opening inventory	24	15	360
	Purchases	10	20	200
	Sold units:
	On 5th	17	15	255
	On 30th	7	15	105
		1	20	20
	Cost of goods sold			380
	Closing inventory on 30th	9	20	180

29	Particulars
	Total inventory: (15+29+45)	89
	Closing inventory	17
	Sold units	72
	a. FIFO
	Particulars	Units	Rate	Value
	Sold from April 1 inventory	15	30	450
	Sold from June 16 inventory	29	33	957
	Sold from Sep 28 inventory	28	35	980
	Cost of goods sold	72		2387
	b. LIFO
	Particulars	Units	Rate	Value
	Sold from Sep 28 inventory	45	35	1575
	Sold from June 16 inventory	27	33	891
	Cost of goods sold	72		2466
	c. Average cost
	Total cost
	Particulars	Units	Rate	Value
	April 1 inventory	15	30	450
	June 16 inventory	29	33	957
	Sep 28 inventory	45	35	1575
	Total cost	89		2982
	Average cost = 2982 / 89			33.506
	Cost of goods sold = 72*33.505			2412.404