Eevee's Chemicals started operations on Dec 1. Inventory records for Eevee's Chemicals revealed the following transactions...

 

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Eevee's Chemicals started operations on Dec 1. Inventory records for Eevee's Chemicals revealed the following transactions during December: Units Unit Cost Total Cost Purchases: Dec. 2 200 $3.00 $600 Dec. 10 140 $4.00 $560 Dec. 20 160 $5.00 $800 Sales: Units Sale Price Dec. 15 Dec. 30 250 $6.00 150 $7.00 Required: 1. Assuming that all the purchases are made on account, prepare the journal entries to record the purchases on Dec 2 under (a) perpetual inventory system and (b) periodic inventory system. 2. Under perpetual inventory system, determine the cost of goods sold, ending inventory, and gross profit amounts under (a) FIFO cost and (b) weighted average cost method. Round weighted average cost per unit to four decimal places, and round all other amounts to the nearest dollar. Show your calculations. Eevee's Chemicals started operations on Dec 1. Inventory records for Eevee's Chemicals revealed the following transactions during December: Units Unit Cost Total Cost Purchases: Dec. 2 200 $3.00 $600 Dec. 10 140 $4.00 $560 Dec. 20 160 $5.00 $800 Sales: Units Sale Price Dec. 15 Dec. 30 250 $6.00 150 $7.00 Required: 1. Assuming that all the purchases are made on account, prepare the journal entries to record the purchases on Dec 2 under (a) perpetual inventory system and (b) periodic inventory system. 2. Under perpetual inventory system, determine the cost of goods sold, ending inventory, and gross profit amounts under (a) FIFO cost and (b) weighted average cost method. Round weighted average cost per unit to four decimal places, and round all other amounts to the nearest dollar. Show your calculations.

Answer rating: 100% (QA)

Answer 1 Journal Entries a Perpetual Inventory System Dec 2 Inventory 600 Accounts Payable 600 b Per... View the full answer