enter the transactions in chronological order, calculating new inventory on - hand balances after each…

enter the transactions in chronological order, calculating new inventory on - hand balances after each transaction. once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold and on hand at the end of the period. (enter all amounts to the nearest cent, $x.xx. for inventory on hand, enter the oldest inventory layers first. for cost of goods sold, enter the inventory layers in the order in which they are removed from inventory)\ndate purchases cost of goods sold inventory on hand\nquantity unit cost total cost quantity unit cost total cost quantity unit cost total cost\noctober 2\n6\n8\n13\n14\ntotals\npurchases and sales\noctober 2 purchased 12 gallons @ $2.20 each\noctober 6 purchased 7 gallons @ $2.55 each\noctober 8 sold 4 gallons of milk to a customer\noctober 13 purchased 4 gallons @ $2.80 each\noctober 14 sold 5 gallons of milk to a customer

enter the transactions in chronological order, calculating new inventory on - hand balances after each transaction. once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold and on hand at the end of the period. (enter all amounts to the nearest cent, $x.xx. for inventory on hand, enter the oldest inventory layers first. for cost of goods sold, enter the inventory layers in the order in which they are removed from inventory)\ndate purchases cost of goods sold inventory on hand\nquantity unit cost total cost quantity unit cost total cost quantity unit cost total cost\noctober 2\n6\n8\n13\n14\ntotals\npurchases and sales\noctober 2 purchased 12 gallons @ $2.20 each\noctober 6 purchased 7 gallons @ $2.55 each\noctober 8 sold 4 gallons of milk to a customer\noctober 13 purchased 4 gallons @ $2.80 each\noctober 14 sold 5 gallons of milk to a customer

Answer

Explanation:

Step1: Record October 2 purchase

Purchases: Quantity = 12, Unit Cost = $2.20, Total Cost = 12×2.20 = $26.40. Inventory on Hand: Quantity = 12, Unit Cost = $2.20, Total Cost = $26.40

Step2: Record October 6 purchase

Purchases: Quantity = 7, Unit Cost = $2.55, Total Cost = 7×2.55 = $17.85. Inventory on Hand: Quantity = 12 + 7=19, Total Cost = 26.40+17.85 = $44.25, with 12 units at $2.20 and 7 units at $2.55

Step3: Record October 8 sale

Cost of Goods Sold: Quantity = 4. We take from the oldest inventory layer (October 2). Unit Cost = $2.20, Total Cost = 4×2.20 = $8.80. Inventory on Hand: Quantity = 19 - 4=15, Total Cost = 44.25 - 8.80 = $35.45, with 8 units at $2.20 and 7 units at $2.55

Step4: Record October 13 purchase

Purchases: Quantity = 4, Unit Cost = $2.80, Total Cost = 4×2.80 = $11.20. Inventory on Hand: Quantity = 15 + 4=19, Total Cost = 35.45+11.20 = $46.65, with 8 units at $2.20, 7 units at $2.55 and 4 units at $2.80

Step5: Record October 14 sale

Cost of Goods Sold: Quantity = 5. We first take 8 units at $2.20 (but we only need 5). Unit Cost = $2.20, Total Cost = 5×2.20 = $11. Inventory on Hand: Quantity = 19 - 5=14, Total Cost = 46.65 - 11 = $35.65, with 3 units at $2.20, 7 units at $2.55 and 4 units at $2.80

Step6: Calculate totals

Purchases - Quantity: 12 + 7+4=23, Total Cost: 26.40+17.85 + 11.20=$55.45 Cost of Goods Sold - Quantity: 4 + 5=9, Total Cost: 8.80+11 = $19.80 Inventory on Hand - Quantity: 14, Total Cost: $35.65

Date Purchases Cost of Goods Sold Inventory on Hand
Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
October 2 12 $2.20 $26.40 0 - 0 12 $2.20 $26.40
October 6 7 $2.55 $17.85 0 - 0 19 - $44.25
October 8 0 - 0 4 $2.20 $8.80 15 - $35.45
October 13 4 $2.80 $11.20 0 - 0 19 - $46.65
October 14 0 - 0 5 $2.20 $11 14 - $35.65
Totals 23 - $55.45 9 - $19.80 14 - $35.65

Answer:

See the above - filled table for details of quantity and total cost of merchandise purchased, sold and on hand at the end of the period.