Exercise 4 7A Algo Determining the cost of inventory LO 4 2

Last updated: 3/5/2023

Exercise 4 7A Algo Determining the cost of inventory LO 4 2 4 3 4 4 For each of the following cases determine the ending balance in the inventory account Hint First determine the total cost of Inventory available for sale Next subtract the cost of the Inventory sold to arrive at the ending balance Required a Jill s Dress Shop had a beginning balance in Its Inventory account of 46 000 During the accounting period Jill s purchased 93 000 of Inventory returned 6 200 of Inventory and obtained 870 of purchases discounts Jill s Incurred 1 240 of transportation In cost and 720 of transportation out cost Salaries of sales personnel amounted to 37 000 Administrative expenses amounted to 41 600 Cost of goods sold amounted to 94 300 b Ken s Balt Shop had a beginning balance in Its Inventory account of 10 400 During the accounting period Ken s purchased 46 500 of Inventory obtained 1 440 of purchases allowances and received 480 of purchases discounts Sales discounts amounted to 760 Ken s Incurred 1 140 of transportation In cost and 380 of transportation out cost Selling and administrative cost amounted to 13 500 Cost of goods sold amounted to 36 300 Cost of goods available for sale Ending Inventory Jill s Dress Shop Ken s Bait Shop