Delta Furniture Supply sells various furniture items and uses a perpetual inventory system. On November 1 it had no ta
Delta Furniture Supply sells various furniture items and uses a perpetual inventory system. On November 1 it had no tables in stock. The following transactions occurred during November:
Nov. 3 Delta purchased 150 tables from Burnaby Manufacturing Ltd. for $13,500, terms n/30, FOB shipping point.
3 Delta paid $450 to Freight Forward Company for the delivery of the tables.
19 Delta sold 45 tables to Hobby Horse Inc. for $170 each on credit, terms 2/10, n/30, FOB destination.
19 Delta paid $135 cash to Freight Forward Company for the delivery of the tables to Hobby Horse Inc.
21 Hobby Horse Inc. returned fi ve tables. Delta credited Hobby Horse's account and the tables were returned to inventory.
29 Delta received the amount owing from Hobby Horse Inc.
30 Paid Burnaby Manufacturing Ltd. for the tables purchased on November 3.
On November 30, Delta did an inventory count and found that there were 109 tables on hand.
(a) Calculate the total cost of the tables purchased during the month and the average cost per table.
(b) Calculate the number of tables that the company should have on hand according to its subsidiary ledger and determine if an adjustment is required. If so, prepare the adjusting journal entry. Calculate the correct dollar amount for the tables in the subsidiary ledger aft er any required adjustments.
(c) Calculate cost of goods sold after recording any required adjustments.
(d) Calculate the net sales and gross profit that Delta earned on its tables during November.