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

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:

Incremental Change

A method of making changes gradually in small, manageable steps instead of through one large comprehensive shift.

Excise Tax

A tax imposed on specific goods, services, or activities, either as a fixed amount per unit (quantity tax) or as a percentage of the price (ad valorem tax).

Strategic Change

The process of implementing new strategies in an organization to address significant shifts in its internal or external environment.

Diversity Of Labor

The inclusion of a wide range of employees from different backgrounds, cultures, and experiences in the workforce.