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(Solved by Expert Tutors) Hello, I need help with the following accounting exercise.


Question 7

Alpha Company

uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:?

?

Date

Activity

a.

Jan. 3

Purchased on account 350 widgets for $11 each.?

b.

Jan. 5

Sold on account 400 widgets for $30 each. Paid freight out with petty cash of $150.

c.

Jan. 10

Purchased on account 625 widgets for $12 each.

d.

Jan. 11

Shipping cost for the January 10 purchased merchandise was $400 was paid with a?cheque?by Alpha directly to the freight company.?

e.

Jan. 12

Returned 50 widgets received from Jan. 10 purchase as they were not the correct item ordered.

f.

Jan. 13

Paid for the purchases made on Jan. 3.

g.

Jan. 21

Sold on account 550 widgets for $30 each. Paid freight out with petty cash of $250.

h.

Jan. 22

Authorize credit without return of goods for 50 widgets sold on Jan. 21 when customer advised that they were received in defective condition.

i.

Jan. 25

Received payment for the sale made on Jan. 5.

j.

Jan. 26

Paid for the purchases made on Jan. 10.

k.

Jan. 31

Received payment for the sale made on Jan. 21.

Using the Weighted Average method, determine the dollar values following for the month of January:?(Enter only whole dollar values.)

1. Ending Inventory

2. Cost of Goods Available for Sale

3. Cost of Goods Sold

 


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DATE ANSWERED

Apr 19, 2020

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