Ajax Corporation, which uses a periodic inventory system, recorded the following inventory transactions during the month November
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Question:
Ajax Corporation, which uses a periodic inventory system, recorded the following inventory transactions during the month November of 2020.
Units | Unit cost/Unit price | ||
1-Nov | Beginning inventory | 112 | $72 |
8-Nov | Purchase | 76 | $71 |
13-Nov | Sale | 121 | $99 |
21-Nov | Purchase | 56 | $69 |
26-Nov | Sale | 67 | $98 |
a. Using the weighted average cost method, calculate the value of ending inventory at November 30.
b. Using the FIFO method, calculate the value of cost of goods sold for November.
c. Write all the relevant journal entries for the purchase of inventory on Nov 8 and the sale on Nov 13. Assume all purchase and sale were on account and the company uses the FIFO method.
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
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