This paper circulates around the core theme of On December 1, 2012, Ruggiero Company had the account balances shown below.The following transactions occurred during December. Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.72 per unit. 5 Sold 4,400 units of inventory on account fo together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
On December 1, 2012, Ruggiero Company had the account balances shown below.
.transtutors.com/Transtutors001/Images/Transtutors001_994dee4b-0104-4ba0-acbf-4cddd4c3ea51.PNG”>
The following transactions occurred during December.
Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.72 per unit.
5 Sold 4,400 units of inventory on account for $0.90 per unit. (It sold
3,000 of the $0.60 units and 1,400 of the $0.72.)
7
Granted the December 5 customer $180 credit for 200 units of inventory
returned costing $150. These units were returned to inventory.
17 Purchased 2,200 units of inventory for cash at $0.80 each.
22 Sold 2,000 units of inventory on account for $0.95 per unit. (It sold 2,000 of the $0.72 units.)
Adjustment data:
1. Accrued salaries payable $400.
2. Depreciation $200 per month.
3. Income tax expense was $215, to be paid next year.
Instructions
(a) Journalize the December transactions and adjusting entries, assuming Ruggiero uses the perpetual inventory method.
(b)
Enter the December 1 balances in the ledger T accounts and post the
December transactions. In addition to the accounts mentioned above, use
the following additional accounts: Cost of Goods Sold, Depreciation
Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales
Revenue, Sales Returns and Allowances, Income Tax Expense, and Income
Taxes Payable.
(c) Prepare an adjusted trial balance as of December 31, 2012.
(d) Prepare an income statement for December 2012 and a classified balance sheet at December 31, 2012.
(e) Compute ending inventory and cost of goods sold under FIFO, assuming Ruggiero Company uses the periodic inventory system.
(f) Compute ending inventory and cost of goods sold under LIFO, assuming Ruggiero Company uses the periodic inventorysystem.
