Question
(A)Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were
(A)Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows: Quantity Unit Cost Total Cost Beginning inventory (Jan. 1) 16 $ 20 $ 320 Purchase (Jan. 11) 14 $ 32 448 Purchase (Jan. 13) 18 $ 33 594 Purchase (Jan. 20) 23 $ 35 805 Total 71 $ 2167 On January 14, Beech Soda, Inc. sold 30 units of this product. The other 41 units remained in inventory at January 31. i. Pass journal entries related to all purchases by assuming that all transactions were made on cash. ii. Assuming that Beech Soda uses the FIFO cost flow assumption, calculate cost of goods sold to be recorded at January 14 and pas corresponding journal entry related to sale transaction. iii. Assuming that Beech Soda uses the LIFO cost flow assumption, calculate cost of goods sold to be recorded at January 14 and pas corresponding journal entry related to sale transaction. iv. Assuming that Beech Soda uses the average cost flow assumption, calculate cost of goods sold to be recorded at January 14 (round your intermediate calculation to one decimal place and cost per unit to the nearest cent) and pas corresponding journal entry related to sale transaction. v. Assuming that Beech Soda uses the FIFO cost flow assumption, calculate the total cost of 41 units of this product in inventory at January 31. vi. Assuming that Beech Soda uses the LIFO cost flow assumption, calculate total cost of 41 units of this product in inventory at January 31.
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