Top Light Company uses a perpetual inventory system. The company began 2024 with 1,000 lamps in inventory
Question:
Top Light Company uses a perpetual inventory system. The company began 2024 with 1,000 lamps in inventory at a cost of $12 per unit. During 2024, Top Light had the following purchases and sales of lamps:
All purchases and sales are on account.
Instructions
a. Calculate the cost of goods sold and ending inventory using weighted average. Round the weighted average cost per unit to two decimal places.
b. Prepare journal entries to record the June 6 purchase and the October 18 sale.
c. Calculate gross profit for the year.
February 15 April 24 June 6 October 18 December 4 Purchased Sold Purchased Sold Purchased 2,000 units @ $18 per unit 2,500 units @ $30 per unit 3,500 units @ $23 per unit 2,000 units @ $33 per unit 1,400 units @ $26 per unit
Step by Step Answer:
a Weighted average b c Date Units Cost Beginning inventory 1000 1200 Feb 1...View the full answer
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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