Langley Inc. inventory records for a particular development program show the following at October 31, 2020: At
Question:
Langley Inc. inventory records for a particular development program show the following at October 31, 2020:
At October 31, ten of these programs are on hand. Langley uses the perpetual inventory system.
{Requirements}
1. Journalize for Langley:
a. Total October purchases in one summary entry. All purchases were on credit.
b. Total October sales and cost of goods sold in two summary entries. The selling price was \(\$ 500\) per unit, and all sales were on credit. Langley uses the FIFO inventory method.
2. Under FIFO, how much gross profit would Langley earn on these transactions? What is the FIFO cost of Langley's ending inventory?
Step by Step Answer:
Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin