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vivado [14]
3 years ago
12

James Company began the month of October with inventory of $19,000. The following inventory transactions occurred during the mon

th:
A. The company purchased merchandise on account for $28,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $540 were paid in cash.
2. On October 31, James paid for the merchandise purchased on October 12.
3. During October merchandise costing $18,600 was sold on account for $28,800.
4. It was determined that inventory on hand at the end of October cost $28,100.
Required:
1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold.
2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.
Business
1 answer:
Juli2301 [7.4K]3 years ago
5 0

Answer:

<u>1. Entries using periodic inventory system</u>

October 12

J1

Purchases $28,000 (debit)

Trade Payable$28,000 (credit)

j2

Freight Charges $540 (debit)

Cash $540 (credit)

October 31

Trade Payable $28,000 (debit)

Cash $28,000 (credit)

October 31

Trade Receivable $28,800 (debit)

Revenue $28,800 (credit)

October 31

Inventory $28,100 (debit)

Cost of Goods Sold $28,100 (credit)

<u>2. Entries using periodic inventory system</u>

October 12

J1

Merchandise $28,000 (debit)

Trade Payable$28,000 (credit)

j2

Freight Charges $540 (debit)

Cash $540 (credit)

October 31

Trade Payable $28,000 (debit)

Cash $28,000 (credit)

October 31

J1

Trade Receivable $28,800 (debit)

Revenue $28,800 (credit)

J2

Cost of Sales $18,600 (debit)

Merchandise $18,600 (credit)

October 31

Merchandise $28,100 (debit)

Cost of Goods Sold $28,100 (credit)

Explanation:

<u>1. Entries using periodic inventory system</u>

With periodic system, inventory valuation is done at end of a specific period.

<u>2. Entries using periodic inventory system</u>

Perpetual system is the method of recalculating the value of goods held after each transaction

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Answer:

$31584

Explanation:

Solution

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It gives us

=1,764 Hours

For the month of July,

The total direct cost of labor = The produced Unit * The Hours per unit

= 1900 * 84 Hours per unit

= 1,596 Hours

Next is to calculate the direct labor cost.

For the month of June

Direct labor cost =  Direct labor hours *  The rate per direct labor hour.

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For the month of July

Direct labor cost =  Direct labor hours *  The rate per direct labor hour.

= 1,596 Hours * $9.40 per hour

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Now,

We will compute pr find the combined direct labor cost for the two months

The combined direct labor * Direct labor cost (June) + Direct labor cost (July)

Which is now,

= $16581.6 + $15002.4 = $31584

Therefore the combined direct labor cost for the two months is $31584

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Answer:

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The answer is:<span>
"Trial Balance"

The full sentence will be as follow:
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Answer:

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