Suppose a technology company's inventory records for a particular computer chip indicate the following at December 31:

Dec

1 Beginning inventory 7 units @ $180 =1260

8 Purchase 5units @ $180 =900

15 Purchase 12 units @ 190 = 2280

26 Purchase 6 units @ 200 =1200

The physical count of inventory at December 31 indicates that eight units of inventory are on hand

Required

Journalize the following for the periodic system:

1. Total December purchases in one summary entry. All purchases are on credit.

2. Total December sales in a summary entry. Assume that the selling price was $295 per unit and that all sales were on credit.

3. December 31 entries for inventory. The company uses weighted-average cost. Post to the Cost of Goods Sold T-account to show how this amount is determined. Label each item in the account.

4. Show the computation of cost of goods sold by the cost-of-goods-sold model.