$\text { The following selected transactions for Nova Scotian Tire occurred in October. }$

question 37

Essay

$\text { The following selected transactions for Nova Scotian Tire occurred in October. }$
$\begin{array} { l l l c c c } \text { Date } && \text { Description } & \text { Units } & \text { Unit Cost } & \text { Unit Selling Price } \\\text { Oct } & 1 & \text { Beginning Inventory } & 12 & \$ 164 & \\& 1 & \text { Purchase } & 50 & 170 & \\& 4 & \text { Sale } & 27 & & \$ 270 \\& & \text { Sale } & 23 & & 270 \\& & \text { Purchase } & 33 & 175 & \\& & \text { Sale } & 24 & & 270 \\& & \text { Purchase } & 31 & 190 & 280\\& 30& \text { Sale } & 24 & & 280\end{array}$ 1. Assuming that Nova Scotian Tire uses a perpetual inventory system, calculate cost of goods sold and ending inventory using: a)FIFO b)Moving weighted average.
2. Assuming that Nova Scotian Tire uses a periodic inventory system, calculate cost of goods sold and ending inventory using: a)FIFO b)Weighted Average.
3. Assuming that Nova Scotian Tire uses FIFO under a perpetual inventory system, calculate the gross margin for the month of October.
4. Assuming that Nova Scotian Tire uses FIFO under a perpetual inventory system, prepare a journal to record the October 30th sale on credit.
5. Nova Scotian Tire does a physical inventory count at the end of October and discovers 15 tires are missing from inventory. Prepare a journal entry to adjust inventory, assuming the company uses Weighted Average under a periodic inventory system.

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Definitions:

Utility

The extent to which something provides economic value greater than its cost.

Practicality

The aspect of being sensible, realistic, and focused on what is achievable and efficient in real-world situations.

Educational Background

Refers to the formal schooling, degrees, and certifications completed by an individual.

Application Form

A form that is used to collect information from a person applying for a job, a loan, or some other form of request.