Refer to the data for Builder Bee Equipment in P5-48B. However, assume Builder Bee Equipment uses the average cost method.

Requirements 1. Prepare a perpetual inventory record using average cost. Round the average unit cost to the nearest cent and all other amounts to the nearest dollar.

2. Prepare a multi-step income statement for Builder Bee Equipment for the month of April.

5-48

Builder Bee Equipment sells hand held engine analyzers to automotive service shops. Builder Bee Equipment started April with an inventory of 45 units that cost a total of \($5,760.\) During the month, Builder Bee Equipment purchased and sold merchandise on account as follows:

Builder Bee Equipment uses the LIFO method. Cash payments on account totaled \($20,000.\) Operating expenses for the month were \($15,000,\) with two-thirds paid in cash and the rest accrued as Accounts Payable.

Transcribed Image Text:

Apr 6 13 19 Purchased 115 units @ $142 Sold 100 units @ $300 Purchased 80 units @ $152 25 Sold 40 units @ $300 29 Sold 75 units @ $300