At the End of Last Year, Baron's Bazaar Had Merchandise

question 18

Essay

At the end of last year, Baron's Bazaar had merchandise costing $381,000 in inventory.
During January of the current year, the company purchased merchandise costing $133,500, and sold merchandise which it had purchased at a total cost of $109,300.
a. Assume that Baron's Bazaar uses a perpetual inventory system.
(1) The total amount debited to the Inventory account during January was:
$________________
(2) The balance in the Inventory account at January 31 was:
$________________
(3) The amount of costs transferred from the Inventory account to the Cost of Goods Sold account during January was:
$________________
b. Assume that Baron's Bazaar uses a periodic inventory system and takes a physical inventory only at year-end (December 31). (Note: $0 may be an appropriate answer to one or more of the following questions.)
(1) The total amount debited to the Inventory account during January was:
$________________
(2) The balance in the Inventory account at January 31 was:
$________________
(3) The amount of costs transferred from the Inventory account to the Cost of Goods Sold account during January was:
$________________

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Definitions:

Four-Legged Walkers

Animals that use all four limbs to support their movement across a substrate, showcasing a quadrupedal mode of locomotion.

Land Dwellers

Organisms that live predominantly or entirely on land as opposed to in the water or air.

Notochord

A flexible rod-like structure in the embryos of all chordates, providing skeletal support and defining the primitive axis of the body.

Embryos

Early stages of development in multicellular organisms following fertilization.