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Question - On April 1, Banzai Interior Designs purchased 500 units of dining tables at a unit cost of P1,500 and on July 15 another 300 units at a total price of P600,000 both on terms of n/30. During the year, 700 units were sold at P3,500 per unit on terms n/15, all delivered to Macko Furnitures on May 1 for 500 units and on July 30 for 200 units.
Requirements -
a. Prepare the necessary journal entries using Perpetual and Periodic methods.
b. Compute for sales, cost of goods sold (note: unit cost of 2 deliveries are different) and gross profit.
c. Determine the total cost of inventory at year end.
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