The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31,
Question:
The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2020.
Beginning | 584 units @ $83/unit | |||||
Feb. 10 | 310 units @ $80/unit | |||||
Aug. 21 | 190 units @ $93/unit | |||||
Stilton Company has two credit sales during the period. The units have a selling price of $143 per unit.
Sales | ||
Mar. | 15 | 390 units |
Sept. | 10 | 295 units |
Stilton Company uses a perpetual inventory system.
Required:
1. Calculate the dollar value of cost of goods sold and ending inventory using: (Do not round intermediate calculations. Round "Average cost per unit" to 2 decimal places. Round the final answers to 2 decimal places.)
Ending Inventory | Cost of Goods Sold | ||
a. | FIFO | ||
b. | Moving weighted average |
2. Calculate the dollar value of cost of goods sold and ending inventory using specific identification, assuming the sales were specifically identified as follows:
Mar. | 15: | 206 | units from beginning inventory |
184 | units from the February 10 purchase | ||
Sept. | 10: | 201 | units from beginning inventory |
32 | units from the February 10 purchase | ||
62 | units from the August 21 purchas |
Ending Inventory | Cost of Goods Sold | |
Specific Identification |
3. Using information from your answers in Parts 1 and 2, journalize the credit purchase on February 10 and the credit sale on September 10 for each of:
a. FIFO
Journal entry worksheet
- Record the purchase of inventory on credit.
Note: Enter debits before credits.
Date | General Journal | Debit | Credit |
February 10 | |||
b. Moving weighted average (Do not round intermediate calculations. Round "Average cost per unit" to 2 decimal places. Round the final answers to nearest whole dollar.)
Journal entry worksheet
- Record the purchase of inventory on credit.
Note: Enter debits before credits.
Date | General Journal | Debit | Credit |
February 10 | |||
c. Specific identification
Journal entry worksheet
- Record the purchase of inventory on credit.
Note: Enter debits before credits.
Date | General Journal | Debit | Credit |
February 10 | |||
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello