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

Re

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 ABBA's inventory with the following headings

Purchased Sold Balance

Date: Units UnitCost COGS Units Units UnitCost Cost

b. Record the journal entry for the May 5 sale. Show calculations for cost of goods sold.

c. Record the journal entry for the May 16 sale. Show calculations for cost of goods sold.

d. Calculate ending inventory in units, cost per unit, and total cost.

e. What is ABBA's gross profit for May?

f. What is its gross profit percentage for May?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

ABBA uses the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in January 2023. All sales are made on account. Round all per...

Q:

2) Monomaniacs Inc. makes use of a perpetual inventory system for the goods it sells. During January 2021, the following transactions took place: Date Transaction # of Units $/Unit 01/02 Beginning...

Q:

2) Monomaniacs Inc. makes use of a perpetual inventory system for the goods it sells. During January 2021, the following transactions took place: Date Transaction # of Units $/Unit 01/02 Beginning...

Q:

Costco uses the weighted average inventory cost flow assumption for tracking its inventory. One of its products, bags of frozen berries, is exclusively sold to Smoothie stores across Vancouver. The...

Q:

Larkspur, Inc. uses a perpetual inventory system reports the following for the month of June. Calculate the average cost per unit, using a perpetual inventory system. Assume a sale of 430 units...

Q:

need help with all of these, each pic is its own question, urgent! Monty Corp. uses a perpetual inventory system. The company had the following inventory transactions in April. April , 3 Purchased...

Q:

5.1/17 Show Attempt History Current Attempt in Progress Martinez Corp. uses a perpetual inventory system reports the following for the month of June. Date June 1 12 23 30 Unit Cost $5 Explanation...

Q:

calculate the average cost per unit ent-player/index.html?launchid=be71d518-ec42-4353-8299-28a2811ce08/question/3 -/5 111 Question 4 of 4 View Policies Current Attempt in Progress Monty Corp. uses a...

Q:

Pina Colada Corp uses a perpetual inventory system reports the following for the month of june calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a...

Q:

calculate cost of the ending inventory and the cost of good sold for each cost flow assumption, using a perpetual inventory system. Assuming a sale of 400 units occurred on June 15 for his selling...

Q:

On January 1, 2012, Fishing Creek Company purchased Skull Valley Technologies for $8,800,000 cash. The book value and fair value of Skull Valleys assets as of the date of the acquisition are listed...

Q:

Calculate the price, the marginal cost of rice, and the quantity produced if the government sets a production quota of 2,000 boxes a week. The demand and supply schedules for rice are Quantity...

Q:

Regular Expressions ( Regex ) are only used for searching in strings and cannot be used for string manipulation like substitution. True False

Q:

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

Q:

Explain the importance of nonverbal messages.

Q:

Describe the advantages of effective listening.

Q:

Prepare an employment application.