TsIzzWe (Ts) is a company that purchases T shirts from themanufacturer, Frootyluums (Frooty) and sells them to collegestudents through the college bookstore, Rskoolstore (RSkool). Tshas hired you to be the accountant for the company.
Ts has decided to use the inventory flow method with itsperpetual inventory system. Using the data provided fortransactions that occurred during August, determine the GrossProfit at the end of the period.
8/6 Ts purchased 200 long sleeve blueshirts on account from Frooty for $3 each. Terms FOB-SP 2/10, n30 Shipping costs = $40
8/8 Ts purchased 500 short sleeveblue shirts on account from Frooty for $2.50 each. Terms FOB-D2/15, n30 Shipping costs = $50
8/10 Ts notified Frooty that 50 of the long sleeveshirts were purple. After negotiation, Frooty agreed to reduce theprice of those shirts to $2 each. Ts agreed to keep the shirts.
8/11 Ts purchased 400 long sleeve blue shirts onaccount from Frooty for $3.50 each. Terms FOB-D n/eom Shippingcosts = $40
8/12 Ts sold 290 long sleeve blue shirts to RSkoolon account for $8 each. Terms FOB-SP 1/10, n30Shipping costs = $30
8/14 Ts paid for the purchase on the6th.
8/16 Ts sold 20 long sleeve purple shirts to RSkool on accountfor $5 each. Terms FOB-D 2/10, n/eom Shipping costs = $5
8/18 Ts paid for the short sleeve shirts
8/20 Ts sold 380 short sleeve shirts to RSkool onaccount for $7 each. Terms FOB-SP n/eom Shipping costs= $38
8/21 Ts received payment from RSkool for the longsleeve blue shirts
8/22 RSkool returned 100 of the short sleeve shirtsbecause they were too small.
8/24 Ts sold 200 long sleeve blue shirts to RSkoolon account for $8 each. Terms FOB-D 3/5, n/30 Shippingcosts = $30
8/29 Ts received payment from RSkool for thepurchase on the 24th
8/30 Ts received payment from RSkool for the purpleshirts.
8/31 Ts received payment from RSkool for thepurchase on the 20th
8/31 Ts paid for the purchase on the11th.
TsIzzWe (Ts) is a company that purchases T shirts from themanufacturer, Frootyluums (Frooty) and sells them to collegestudents through the college bookstore, Rskoolstore (RSkool). Tshas hired you to be the accountant for the company.
Ts has decided to use the inventory flow method with itsperpetual inventory system. Using the data provided fortransactions that occurred during August, determine the GrossProfit at the end of the period.
8/6 Ts purchased 200 long sleeve blueshirts on account from Frooty for $3 each. Terms FOB-SP 2/10, n30 Shipping costs = $40
8/8 Ts purchased 500 short sleeveblue shirts on account from Frooty for $2.50 each. Terms FOB-D2/15, n30 Shipping costs = $50
8/10 Ts notified Frooty that 50 of the long sleeveshirts were purple. After negotiation, Frooty agreed to reduce theprice of those shirts to $2 each. Ts agreed to keep the shirts.
8/11 Ts purchased 400 long sleeve blue shirts onaccount from Frooty for $3.50 each. Terms FOB-D n/eom Shippingcosts = $40
8/12 Ts sold 290 long sleeve blue shirts to RSkoolon account for $8 each. Terms FOB-SP 1/10, n30Shipping costs = $30
8/14 Ts paid for the purchase on the6th.
8/16 Ts sold 20 long sleeve purple shirts to RSkool on accountfor $5 each. Terms FOB-D 2/10, n/eom Shipping costs = $5
8/18 Ts paid for the short sleeve shirts
8/20 Ts sold 380 short sleeve shirts to RSkool onaccount for $7 each. Terms FOB-SP n/eom Shipping costs= $38
8/21 Ts received payment from RSkool for the longsleeve blue shirts
8/22 RSkool returned 100 of the short sleeve shirtsbecause they were too small.
8/24 Ts sold 200 long sleeve blue shirts to RSkoolon account for $8 each. Terms FOB-D 3/5, n/30 Shippingcosts = $30
8/29 Ts received payment from RSkool for thepurchase on the 24th
8/30 Ts received payment from RSkool for the purpleshirts.
8/31 Ts received payment from RSkool for thepurchase on the 20th
8/31 Ts paid for the purchase on the11th.
