Vista Distributors purchases inventory in crates of merchandise. Assume the company began July with an inventory of
Question:
Jul. 10 Purchased 30 units at $320.
15 Sold 40 units at $700.
22 Purchased 70 units at $350.
29 Sold 75 units at $800.
Assume Vista Distributors uses the FIFO cost method for valuing inventories. The company uses a perpetual inventory system. Cash payments on account totaled $15,000. Company operating expenses for the month were $30,000. The company paid one-half in cash, with the rest accrued as Accounts Payable.
Required
1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.
2. Make journal entries to record the company's transactions.
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Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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