Question 2 & 3 Acct 101

Beginning inventory, purchases, and sales data for personal organizers are as follows:

Jan 1 Beginning Inventory 45 units @ $24

3 Sold 35 units

8 Purchased 70 units @ $32

21 Sold 65 units

30 Purchased 25 units @ $47

Instructions: 1 - Using the above transactions prepare the perpetual inventory record using each of the costing methods listed below. 2 – In the space provided below identify the ending inventory balance and cost of goods sold for June under each method.

a) FIFO

b) LIFO

c) Weighted Average (Round unit cost to the nearest cent and total

costs to the nearest dollar)

FIFO

FIFO	Purchases	Cost of Goods Sold	Inventory On Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan 1							45	24	1080
Jan 3

Ending Inventory:

Cost of Goods Sold:

LIFO

LIFO	Purchases	Cost of Goods Sold	Inventory On Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost

Ending Inventory:

Cost of Goods Sold:

Weighted Average

Weighted Average	Purchases	Cost of Goods Sold	Inventory On Hand
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost

Ending Inventory:

Cost of Goods Sold:

Problem 3 (14 points)

Lawlor Lawn Service had the following transactions in June. Prepare journal entries for these transactions assuming Lawlor Lawn Service uses a perpetual inventory system.

Jun 2 Completed lawn service and received cash of $800

5 Purchased 110 plants on account for inventory, $304, plus freight in

of $15

15 Sold 60 plants on account, $600

17 Consulted with a client on landscaping design for a fee of $250 on

account

20 Purchased 120 plants on account for inventory, $384

21 Paid on account, $400

25 Sold 110 plants for cash, $990

Extra Credit for June 30th transaction

30 Recorded the following adjusting entries

Depreciation, $30

Physical count of plant inventory, 30 plants

GENERAL JOURNAL
DATE	DESCRIPTION	REF	DEBIT	CREDIT