Hunt Company uses a perpetual inventory system. Transactions...

Hunt Company uses a perpetual inventory system. Transactions for an inventory item during April were as follows: April 1 had beginning inventory of 40 units @ $210 per unit. April 9 Purchased 10 units @ $225 per unit. April 14 Sold 30 units @ $400 per unit. April 23 Purchased 20 units @ $227 per unit. April 29 Sold 15 units @ $420 per unit. REQUIRED: Record the beginning inventory, purchases, cost of goods sold, and the continuous (perpetual) inventory balance (assuming a FIFO flow of goods) for April on an inventory control schedule with the following columns? Date April xx Received Quantity Received $$$ Sold Quantity Sold $$$ Balance Quantity Balance $$$

Transcript

00:01 Hello, to calculate the value of inventory, first we will make a column for date, second column will be for purchases and third column will be cost of merchandise sold and last column will be for inventory.

00:28 In purchases column, we will write quantity, unit cost and the total cost.

00:37 In cost of merchandise sold, we will again add on quantity column, unit cost and the total cost.

00:50 Similarly, in the inventory column also, there will be another column quantity, unit cost and the total cost.

01:06 For 3rd april, the opening inventory, it will be 25, 1200 is the unit cost, so therefore the total cost will be 30 ,000.

01:22 Whereas for 8th april, purchases is for 75 quantities and the per unit cost is 1240, therefore the total cost will be 93 ,000.

01:39 Therefore the opening inventory balance will be 25, which unit cost is 1200, so it will be 30 ,000.

01:47 Second, we will add 75 units of inventory, unit cost of which is 1240 and the total cost is 93 ,000.

01:57 Similarly, we will record for the 11th april, here we have a cost of merchandise sold, which is first we will, by the fifo method, we will sell the opening inventory, that is 25 units and the unit cost will be 1200, so it will be 30 ,000.

02:21 And we will sold remaining 15 units from the second 75 slot, which is, for which the unit cost is 1240 and the total cost will be 18 ,600.

02:35 So the remaining will be 60 units, the unit cost of which will be 1240 and the total cost will be 74 ,400.

02:49 For 30th april, again 30 units have been sold from the 60 slot and the cost per unit will be 1240, whereas the total cost will be 37 ,200.

03:07 So the remaining inventory will be 30 per unit cost 1240 and the total 73 ,200.

03:16 For 8th may, purchases have been done for the 60 units and the per unit cost is 260, therefore the total cost will be 75 ,600.

03:29 So the balance will be 30, 1240, it will be 37 ,200 and the new purchases will be 60, 1260 and it will be 75 ,600...

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