Accounting
ytck
In-ClassTask3-2.docxIn-class task #3
1. Interocean Shipping uses the perpetual inventory system. The following transactions took place during January 2021.
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Date |
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Units |
Unit Cost |
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Jan. 1 |
Opening Inventory |
100 |
$1 |
|
7 |
Purchase #1 |
10 |
$2 |
|
9 |
Sale #1 |
80 |
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21 |
Purchase #2 |
20 | |
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24 |
Sale #2 |
40 |
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Required: Using the table below, calculate cost of goods sold for the January 9 and 24 sales, and ending inventory using the FIFO inventory costing method.
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Purchases |
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Cost of Goods Sold |
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Inventory on Hand (Balance) |
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Date |
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Units |
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Unit Cost |
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Total Cost |
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Units |
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Unit Cost |
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Total Cost |
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Units |
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Unit Cost |
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Total Cost |
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Jan. 1 |
Opening Inventory |
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100 |
x |
$1 |
= |
$100 |
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7 |
Purchase #1 |
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9 |
Sale #1 |
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21 |
Purchase #2 |
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24 |
Sale #2 |
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2. Prepare a bank reconciliation on December 31, 2021, for Fitzpatrick Co. Ltd.
Balance per bank statement, 12/31/2021 $129,000
Balance shown per books, 12/31/2021 $114,920
An analysis of the cancelled cheques revealed the following:
(i) Outstanding cheques of $5,000 for November were still outstanding on December 31;
(ii) $16,800 of cheques written during December were outstanding by the end of the month; and
(iii) an $800 cheque for Fitzgerald Co. had been charged against the Fitzpatrick Co. account in error by the bank.
Fitzpatrick Co. Ltd. had placed $10,200 in the night deposit box of the bank on December 31 and had not received credit on the December bank statement. This was a deposit in transit.
An analysis of the cash receipts journal revealed a $180 error in the deposit of December 20. Fitzpatrick Co. Ltd. recorded it as $3,360, and the correct amount shown on the bank statement was $3,540. The error related to the cheque from the customer YT on payment to Fitzpatrick.
The December bank statement also included several memorandum items:
(1) The first was a credit memorandum for the note of TS Limited collected by the bank for Fitzpatrick on December 28 for $3,600 plus $36 in interest.
(2) The second item was a $16 debit memorandum for the December bank service charge.
(3) The last item was also a debit memorandum. A cheque from M.O.P. for $520 received and deposited by Fitzpatrick Co. during December was returned with the statement marked nonsufficient funds (NSF cheque).
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