Jose Zorilla uses a perpetual inventory system. During April, he sold 700 units, (270 units on April
Question:
Jose Zorilla uses a perpetual inventory system. During April, he sold 700 units, (270 units on April 20 and 430 units on April 28). The following other information is available:
| | | Units | | Unit Cost | | Total Cost | ||
| April 1 inventory | | 250 | | $12.20 | | | $3,050.00 | |
| April 15 purchase | | 400 | | 16.30 | | | 6,520.00 | |
| April 23 purchase | | 350 | | 14.30 | | | 5,005.00 | |
| | | 1,000 | | | | | $14,575.00 | |
Required:
Calculate the April 30 inventory and the April cost of goods sold using the weighted average cost formula. (Round the weighted average cost per unit to 3 decimal places, e.g. 5.275 and final answers to 2 decimal places, e.g. 5,275.25.)
Calculate the April 30 inventory and the April cost of goods sold using the FIFO cost formula.
Prepare the journal entry to record the April 15 purchase assuming the company uses FIFO method of inventory. All purchases are on credit.
Prepare the journal entries to record the sale of units on April 28, assuming the company uses the weighted average cost method. All sales are credit sales, and total $10,208.
Expert Answer:
Weighted Average Method Date Purchase Cost of goods sold Inventory on Hand Q... View the full answer
