question archive College Coasters is a San Antonio– based merchandiser specializing in logo-adorned drink coasters

College Coasters is a San Antonio– based merchandiser specializing in logo-adorned drink coasters

Subject:ManagementPrice: Bought3

College Coasters is a San Antonio– based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $ 0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these trans-actions are explained in greater detail below. 1. Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $ 0.52, with terms of 2/10, n/30. 2. Purchased 1,000 coasters on account from the regular supplier on 12/2 at a unit cost of $ 0.55, with terms of 2/10, n/30. 3. Sold 2,000 coasters on account on 12/3 at a unit price of $ 0.90. 4. Collected $ 1,000 from customers on account on 12/4. 5. Paid the supplier $ 1,600 cash on account on 12/18. 6. Paid employees $ 500 on 12/23, of which $ 300 related to work done in November and $ 200 was for wages up to December 22. 7. Loaded 1,000 coasters on a cargo ship on 12/31 to be delivered to a customer in Hawaii. The sale was made FOB destination with terms of 2/10, n/30. Other relevant information includes the following at 12/31: 8. College Coasters has not yet r 

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