Question: Assume that ABBA continues using the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in May 2023.

Assume that ABBA continues using the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in May 2023. Date Description Units Unit Selling price/Cost May 1 Opening Inventory 3,000 $0.75 5 Sale #1 1,500 6.00 6 Purchase #1 1,250 1.50 10 Purchase #2 750 2.00 16 Sale #2 2,500 7.00 21 Purchase #3 800 3.00 Requirements: a. Prepare a table for ABBAs inventory with the following headings (35 Marks): Purchased (Sold) Balance Unit Unit Total Date Units Cost COGS Units Cost Cost pg. 2 b. Record the journal entry for the May 5 sale. Show calculations for cost of goods sold. (15 Marks): b. Record the journal entry for the May 16 sale. Show calculations for cost of goods sold. (15 Marks): c. Calculate ending inventory in units, cost per unit, and total cost. (20 Marks): d. What is ABBAs gross profit for May? (10 Marks): e. What is its gross profit percentage for May? (5 Marks):

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