ABBA uses the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in January 2018. Unit Selling Price/ Date Units Cost 2,000 $0.50 Jan. 1 Opening Inventory 5 Sale #1 6 Purchase #1 1,200 1,000 5.00 2.00 10 Purchase #2 500 1.00 16 Sale #2 2,000 1,000 6.00 21 Purchase #3 2.50 All sales are made on account. Round all per unit costs to two decimal places. Required: a. Record the journal entry for the January 5 sale. Show calculations for cost of goods sold.
ABBA uses the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in January 2018. Unit Selling Price/ Date Units Cost 2,000 $0.50 Jan. 1 Opening Inventory 5 Sale #1 6 Purchase #1 1,200 1,000 5.00 2.00 10 Purchase #2 500 1.00 16 Sale #2 2,000 1,000 6.00 21 Purchase #3 2.50 All sales are made on account. Round all per unit costs to two decimal places. Required: a. Record the journal entry for the January 5 sale. Show calculations for cost of goods sold.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PEA: Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory...
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