SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. SOUND CORE began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the "TOZO T6" earbuds: 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 8 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) October 31 November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. December 4 A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. December 10 December 30 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the store room. December 31 Unless otherwise stated, assume that all purchases were on account and received on the dates stated Reguired

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a 0prepare a PERPETUAL INVENTORY record for this merchandise using the first in first out (FIFO) method of inventory valuaton to determine SOUND CORE,s cost of good sold for the quater and the value of ending

b)given the selling ,distribution and admintrative cost associated wit TOZO T6 brand of earbuds for the quater were $42,840, $38,120 and $157,076 respecttively, prepare an income statement for SOUND CORE WIRELESS TOZO T6 fot the quater ending december 31, 2021

c) journalize the transaction for the month of october assuming the company uses a

i. periodic inventory system

ii. perpetual inventory system

Transcribed Image Text:SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of W Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. SOUND CORE began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the "TOZO T6" earbuds: 98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 8 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) October 31 November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. December 4 A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. December 10 December 30 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the store room. December 31 Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required:

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