Fly Company uses a perpetual inventory system. Beginning inventory is 2,500 T-shirts at a cost $2.50 per
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Question:
Fly Company uses a perpetual inventory system. Beginning inventory is 2,500 T-shirts at a cost $2.50 per shirt.
During the year Fly had the following inventory transactions:
Jan 12 | Purchased | 500 units @ $2.15 per unit |
Feb 18 | Sold | 1,350 units @ $6.50 per unit |
Jul 1 | Purchased | 1,000 units @ $2.65 per unit |
Aug 29 | Sold | 1,475 units @ $7.50 per unit |
Dec 19 | Purchased | 500 units @ $3.05 per unit |
All purchases and sales are on account.
Instructions
Calculate the cost of goods sold and ending inventory using weighted average.
Prepare journal entries to record the February 18 and the August 29 sales. All sales and purchases are made in cash.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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