1.) Study problem 6-5A starting on page 299. Prepare entries to record Grill's transactions with Grizzly on April 3, 6, and 13, and Grill's transactions with Logan on April 11 and 21. Additionally, prepare the entry Grill would make to record the return from Half Moon on April 30. (Note: only prepare the entries asked for, don't solve the whole problem.)
The following were selected from among the tansactions completed by the Grill Company during April of the current year.April 3. Purchased merchandise on account from Grizzley Co., list price $60,000 trade discount 30%, terms FOB destination, 2/10, n/30
4. Sold merchandise for cash, $23,750. the cost of the merchandise sold was $14,000
5. Purchased merchandise on account from Ferraro Co.m $26,000, terms FOB shipping point, 2/10, n/30, with prepaid freight of $600 added to invoice.
6. Returned $7,000 ($10,000 list price less trade discount of 30%) of merchandise purchased on april 3 from Grizzley Co.
11. Sold merchandise on account to Logan Co. list price $12,000, trade discount 25%, terms 1/10, n/30. the cost of merchandise sold was $5,000
13. Paid Grizzley Co. on account for purchase of April 3, less return of april 6 and discount.
14. Sold merchandise on Visa, $90,000. The cost of merchandise sold was $55,000.
15. Paid Ferraro Co. on account for purchase of April 5, less dicount
21. Received cash on account from sale of april 11 to Logan Co., less discount.
24. Sold merchandise on account to Half Moon Co., $17,500, terms 1/10, n/30. the cost of the merchandise sold was $10,000
28. Paid VISA service fee of $4,000
30. Received merchandise returned by Half Moon Co. from sale on April 24, $2,500. the cost of the returned merchandise was $1,400
2.) Analyze exercise 7-7 on page 343. First, calculate the cost of each individual sale separately first using (a) fifo, and then using (b) lifo procedures. Show work and/or explain answers. Second, answer the question as originally asked.
EX 7-7 FIFO LIFO costs under perpetual inventory system
the following units of a particular item were available for sale during the year.
Beginning inventory 180 units at $80
Sale 120 units at $125
First Purchase 400 units at $82
Sale 300 units at $125
Second Purchase 300 units at $84
Sale 275 units at $125
The firm uses the perpetual inventory system and there are 185 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (a.) FIFO, (b.) LIFO?