Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that ABBA continues using the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in May 2023.

Assume that ABBA continues using the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in May 2023. Date Description Units Unit Selling price/Cost May 1 Opening Inventory 3,000 $0.75 5 Sale #1 1,500 6.00 6 Purchase #1 1,250 1.50 10 Purchase #2 750 2.00 16 Sale #2 2,500 7.00 21 Purchase #3 800 3.00 Requirements: a. Prepare a table for ABBAs inventory with the following headings (35 Marks): Purchased (Sold) Balance Unit Unit Total Date Units Cost COGS Units Cost Cost pg. 2 b. Record the journal entry for the May 5 sale. Show calculations for cost of goods sold. (15 Marks): b. Record the journal entry for the May 16 sale. Show calculations for cost of goods sold. (15 Marks): c. Calculate ending inventory in units, cost per unit, and total cost. (20 Marks): d. What is ABBAs gross profit for May? (10 Marks): e. What is its gross profit percentage for May? (5 Marks):

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts Of Accounting Information Systems

Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman

11th Edition

9780470507025, 0470507020

More Books

Students also viewed these Accounting questions