John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018:

1. John’s purchased merchandise on account for $6,600. Freight charges of $1,100 were paid in cash.
2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,400 and John’s account was credited by the supplier.
3. Merchandise costing $3,600 was sold for $6,800 in cash.

Required:

Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

 

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Samuelson and Messenger (S&M) began 2018 with 270 units of its one product. These units were purchased near the end of 2017 for
$24 each. During the month ofJanuary, 135 units were purchased on January 8 for $27 each and another 270 units were purchased
on January 19 for $29 each. Sales of 130 units and 170 units were made on January 10 and January 25, respectively. There were 375
units on hand at the end of the month. S&M uses a perpetua/inventory system. Required:
1. Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO method.
2. Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the below table to calculate ending inventory and cost of goods sold for January using average cost method. (Round
your cost per unit to 2 decimal places and other answers to nearest whole number. Enter inventory reductions from sales as
negative numbers.)

 

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