A Company Reported the Current Month Purchase and Sales Data

question 157

Essay

A company reported the current month purchase and sales data for its only product and uses the perpetual inventory system.Determine the cost assigned to ending inventory and cost of goods sold using FIFO.
$\begin{array}{r|l|c|c|}\hline \text { Date } & \text { Activities } & \text { Units Acquired at Cost } & \text { Units Sold at Retail } \\\hline \text { April } 1& \text { Beginning Inventory } & 175 \text { units@\$15.00 } & \\\hline 4& \text { Purchase } & \text { 150units@\$16.00 } & \\\hline 7& \text { Sales } & & 160 \text { units@ } \$ 30.00 \\\hline 10&\text { Purchase } & \text { E00units@\$17.00 } & \\\hline 16& \text { Sales } & & 250 \text { units@ } \$ 30.00 \\\hline 25& \text { Purchase } & 160 \text { units@\$18.00 } & \\\hline 28&\text { Sales } & & \text { 150units@\$32.00 } \\\hline\end{array}$

Discuss examples of menu costs and how they relate to inflation.

Understand the reasons for holding U.S. currency abroad.

Comprehend the functions of money, including as a unit of account, medium of exchange, and store of value.

Recognize the insufficiency of legal tender laws for currency usage and the importance of general acceptance.

---

Definitions:

Revenue Accounts

Revenue accounts are those used in accounting to track the income generated by a business from its normal operations.

Income Summary

An account used in closing entries to summarize revenues and expenses for a specific accounting period before transferring the net income to retained earnings.

Reversing Entries

Accounting entries made at the beginning of a new period to negate the effects of adjustments made at the end of the previous period.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the end of the accounting period.