Top Light Company uses a perpetual inventory system. The company began 2021 with 1,000 lamps in inventory

Question:

Top Light Company uses a perpetual inventory system. The company began 2021 with 1,000 lamps in inventory at a cost of $12 per unit. During 2021, Top Light had the following purchases and sales of lamps:

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All purchases and sales are on account.

Instructions

a. Calculate the cost of goods sold and ending inventory using weighted average. Round the weighted average cost per unit to two decimal places.

b. Prepare journal entries to record the June 6 purchase and the October 18 sale.

c. Calculate gross profi t for the year.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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