Prepare the Journal Entries for the Transactions Listed Below Under

question 50

Essay

Prepare the journal entries for the transactions listed below under each: Periodic inventory system and Perpetual inventory system.
A.Purchased merchandise for cash, $1,000.
B.Sold merchandise for $600 cash that had cost $480 (cost is 80% of the sales price).
C.Accepted a sales return from a customer: sales price $30.A cash refund was given to the customer.The goods were returned to regular inventory.
D.Returned goods to the vendor because they did not meet our specification; $50 cash refund was received.

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Definitions:

Direct Labor-Hours

The total hours of labor directly involved in the production of goods or services, often used as a basis for allocating labor costs to products.

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and maintenance expenses.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost of direct materials, based on standard cost.