Middleton Company uses the perpetual inventory system. The company purchased an item of inventory for $75 and sold the item to a customer for $120. How will the sale affect the company's Inventory account?Multiple ChoiceThe inventory account will decrease by $75.There is no effect on the inventory account.The inventory account will decrease by $120.The inventory account will decrease by $45.

The inventory is valued differently under different systems as Periodic inventory system and…

Middleton Company uses the perpetual inventory system. The company purchased an item of inventory for $75 and sold the item to a customer for $120. How will the sale affect the company's Inventory account? Multiple Choice OO O The inventory account will decrease by $75. There is no effect on the inventory account. The inventory account will decrease by $120. The inventory account will decrease by $45.

Middleton Company uses the perpetual inventory system. The company purchased an item of inventory for $75 and sold the item to a customer for $120. How will the sale affect the company's Inventory account? Multiple Choice OO O The inventory account will decrease by $75. There is no effect on the inventory account. The inventory account will decrease by $120. The inventory account will decrease by $45.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 44E: Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual...

See similar textbooks

Similar questions

Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
Middleton Company uses the perpetual inventory system. The company purchased an item of inventory for $130 and sold the item to a customer for $200. How will the sale affect the company's Inventory account?
Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory system. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Waterway Inc. for the month of January 2022. Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $21 January 5 Purchase 148 24 January 8 Sale 114 36 January 10 Sale return 10 36 January 15 Purchase 55 26 January 16 Purchase return 5 26 January 20 Sale 94 41 January 25 Purchase 26 28 Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25 For each of the following cost flow assumptions, calculate cost of goods sold,…
uses a perpetual inventory system.) i (Click the icon to view the transactions.) Apr. 1: Court Company sold merchandise inventory for $190. The cost of the inventory was $145. The customer paid cash. Court Company was running a promotion and the customer received a $10 award at the time of sale that can be used at a future date on any Court Company merchandise. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. (Record debits first, then crédits. Exclude explanations from journal entries.) Date ... Apr. 1 Accounts Debit Credit
Crane Inc. is a retailer operating in British Columbia. Crane uses the perpetual inventory system. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Crane Inc. for the month of January 2022. Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $12 January 5 Purchase 137 15 January 8 Sale 112 23 January 10 Sale return 10 23 January 15 Purchase 55 17 January 16 Purchase return 5 17 January 20 Sale 85 27 January 25 Purchase 17 19 Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25. (Round intermediate calculations to 0 decimal places and final answers to 3 decimal…
A company uses a perpetual inventory system. The return of inventory previously purchased on account for $200 results in a(n): Multiple Choice increase in Cost of Goods Sold of $200. decrease in Inventory of $200. increase in Inventory of $200. decrease in Cost of Goods Sold of $200.
Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Concord Inc. for the month of January. Unit Cost or Date Description Quantity Selling Price Dec. 31 Beginning inventory 160 $21 Jan. 2 Purchase 100 22 Jan. 6 Sale 180 40 Jan 9 Sale return 10 40 Jan. 9 Purchase 75 24 Jan. 10 Purchase return 15 24 Jan. 10 Sale 50 45 Jan. 23 Purchase 100 26 Jan. 30 Sale 120 51 Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Assume sales returns had a cost of $21 and purchase returns had a cost of $24.) Cost of goods sold 2$ Ending Inventory 24 Gross Profit 24 Using Average method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round average cost to 3…
Crane Inc. is a retailer operating in British Columbia. Crane uses the perpetual inventory system. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Crane Inc. for the month of January 2022. Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $12 January 5 Purchase 137 15 January 8 Sale 112 23 January 10 Sale return 10 23 January 15 Purchase 55 17 January 16 Purchase return 5 17 January 20 Sale 85 27 January 25 Purchase 17 19 For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO. (3) Moving-average cost. (Round…
I need help calculating the ending inventory and cost of goods sold using the LIFO method (Please Show Calculations) Note: I also attached an example of what the LIFO chart should look like, please follow that example to answer this question. Jensen Company had the following transactions regarding their inventory, They use a perpetual inventory system. Beginning Inventory: 100 units @ $6.00 per unit First Purchase: 100 units @ $7.00 per unit Sale: 150 units @ $15.00 per unit Second Purchase: 150 units @ $8.00 per unit Sale: 150 units @ $15.00 per unit
Cullumber Inc. is a retailer operating in Calgary, Alberta. Cullumber uses the perpetual inventory system. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Cullumber for the month of January 2025. Date Dec. 31 Jan. 2 Jan. 6 Jan. 9 Jan. 10 Jan. 23. Jan. 30 Description. Ending inventory Purchase: Sale Purchase Sale Purchase Sale Quantity 162 109 177 66 60 100 120 Unit Cost or Selling Price $21 21 38 25 41 28 48
Walmart uses a perpetual inventory system. Which of the following is a reason why Walmart needs to take a physical inventory? To check the accuracy of the perpetual inventory records. O To determine cost of goods sold for the accounting period. O To compute inventory ratios. O All of the choices are correct.