Question

Requirement 1. Prepare perpetual inventory records for December for Streak Free Cleaning using the FIFO inventory costing method. (Note: You must calculate the cost of goods sold on the 11th, 20th, and 31st (adjusting entry a).) Round per unit costs to two decimal places. Enter the transactions in chronological crder, calculating new inventory on hand balances ater each transaction. Once all of the transactions have been entered into the perpetual record, calculale the quantity and total cost of rmerchandise inventory purchased, sol and on hand at the end of the period. Complete the first haif of the schedule in this step, and the remaining hal in the next step. (Enter the cldest inventory layers first Enter a decrease in quantities and tolal costs for Purchases and for Cost of Goods Sold wilh a minus sign or parentheses. Round all unit cost amounts to two decimal places. χχχ and all total cost amounts to the nearest whole dollar.) Cost of Goods Sold Inventory on Hand Units Date QantityCCostQuantity Cost Cost Quantity Cost Cost Dec. 2 Streak Free Cleaning Post-Closing Trial Balance November 30, 2018 Balance Account Title Debit $ 103,350 Accounts Receivable Cleaning Supplies Prepaid Rent Prepaid Insurance 1,500 2,200 3,400 13,000 More Info Dec 2 Purchased 1,000 units of inventory for $4,000 on account trom Swifty Broom Company on terms, 5/10, ni20 5 Purchased 1,200 units of inventory from Dust Free on account with terms 4/10 Accounts Payable Uneaned Revenue Interest Payable Notes Payable Hafner, Capital Total 17.250 n/30. The tctail invoice was for S6,000, which included a $300 freight charge. 7 Returned 300 units of inventory to Swifty Broom from the December 2 purchase. 9 Pald Dust Free 11 Sold 500 units of goods to Pick Up People for $,500 on account with tems n/30. 12 Paid Switty Broom 15 Received 100 units wilh a sales price of S1,700 of goods back from customer 66,000 S 124,420 S 124,420 Pick Up People. 21 Recelved payment from Pick Up People, settling the amount due in full 28 Scld 500 units ofgoods to Brenda, Inc. on account for $9,000. Terms 315, v30 29 Paid cash tor utilities ot 5580 30 Paid cash tor Sales Commission Expense of $311 31 Received payrment from Brenda, Inc, kess discount 31 Recorded the tollowing adjusting entries: Print Done a Physical count of inventory on December 31 showed 900 units of goods on b Depreciation, $2T3 C. Accrued salaries expense of $500 d Estimated sales retums of $1,9D0, wth cost of $570 e. Prepared all other adjustments necessary for December (Hint You will need to review the adiustment inomalion from November to determine the remaining adjustments). Assume the cleaning supplies let at December 31 are S70 Print Done

Requirement 1. Prepare perpetual inventory records for December for Streak Free Cleaning using the FIFO inventory costing method.​ (Note: You must calculate the cost of goods sold on the​ 11th, 28th, and 31st.

​(adjusting entry​ a).) Round per unit costs to two decimal places.

Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​ purchased, sold, and on hand at the end of the period. Complete the first half of the schedule in this​ step, and the remaining half in the next step

Answer 1

1.

	Purchases			Cost of Goods Sold			Inventory on Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Dec 2	1,000	$ 3.80	3,800				1,000	$ 3.80	3,800
Dec 5	1,200	$ 4.81	5,772				1,000 1,200	$3.80 $ 4.81	3,800 5,772
Dec 7	(300)	$ 3.80	(1,140)				700 1,200	$ 3.80 $ 4.81	2,660 5,772
Dec 11				500	$ 3.80	1,900	200 1,200	$ 3.80 $ 4.81	760 5,772
Dec 15				(100)	$ 3.80	(380)	300 1,200	$ 3.80 $ 4.81	1,140 5,772
Dec 28				300 200	$ 3.80 $ 4.81	1,140 962	1,000	$ 4.81	4,810
Totals	1,900		8,432	900		3,622	1,000		4,810

In the books of Streak Free Cleaning:

Date	Account Titles	Debit	Credit
		$	$
Dec 2	Inventory	3,800
	Accounts Payable : Swifty Broom		3,800
Dec 5	Inventory	5,772
	Accounts Payable: Dust Free		5,772
Dec 7	Accounts Payable: Swifty Broom	1,140
	Inventory		1,140
Dec 9	Accounts Payable: Dust Free	5,772
	Cash		5,772
Dec 11	Accounts Receivable: Pick Up People	8,500
	Sales		8,500
Dec 11	Cost of Goods Sold	1,900
	Inventory		1,900
Dec 12	Accounts Payable: Swifty Broom	2,660
	Cash		2,660
Dec 15	Sales Returns and Allowances	1,700
	Accounts Receivable: Pick Up People		1,700
Dec 15	Inventory	380
	Cost of Goods Sold		380
Dec 21	Cash	6,800
	Accounts Receivable: Pick Up People		6,800
Dec 28	Accounts Receivable: Brenda Inc.	9,000
	Sales		9,000
Dec 28	Cost of Goods Sold	2,102
	Inventory		2,102
Dec 29	Utilities Expense	680
	Cash		680
Dec 30	Sales Commission Expense	311
	Cash		311
Dec 31	Cash	8,730
	Sales Discount	270
	Accounts Receivable: Brenda Inc.		9,000

Adjusting entries:

Adjustment	Account Titles	Debit	Credit
December 31		$	$
a.	Cost of Goods Sold	481
	Inventory		481
b.	Depreciation Expense	273
	Accumulated Depreciation		273
c.	Salaries Expense	500
	Salaries Payable		500
d.	Estimated Sales Returns	1,900
	Sales		1,900