Question
average, record journal entries, and calculate gross profit. Apply perpetual FIFO and weighted average. Answer questions about results. Video E6.5 (LO 2) AP Top Light
average, record journal entries, and calculate gross profit.
Apply perpetual FIFO and weighted average. Answer questions about results.
Video
E6.5 (LO 2) AP 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:
February 15
April 24
June 6
October 18
December 4
Purchased
Sold
Purchased
Sold
Purchased
2,000 units @ $18 per unit
2,500 units @ $30 per unit
3,500 units @ $23 per unit
2.000 units @ $33 per unit
1,400 units @ $26 per unit
All purchases and sales are on account.
Instructions
- Calculate the cost of goods sold and ending inventory using weighted average. (Hint: Round the weighted average cost per unit to two decimal places.)
- Prepare journal entries to record the June 6 purchase and the October 18 sale.
- Calculate gross profit for the year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started