Question
Blossom Company uses a perpetual inventory system. The company began 2024 with 1,100 lamps in inventory at a cost of $11 per unit. During 2024,
Blossom Company uses a perpetual inventory system. The company began 2024 with 1,100 lamps in inventory at a cost of $11 per unit. During 2024, Blossom had the following purchases and sales of lamps:
February 15 | Purchased | 2,200 units @ $17 per unit | ||
April 24 | Sold | 2,750 units @ $29 per unit | ||
June 6 | Purchased | 3,850 units @ $22 per unit | ||
October 18 | Sold | 2,200 units @ $32 per unit | ||
December 4 | Purchased | 1,540 units @ $25 per unit |
All purchases and sales are on account.
Calculate the cost of goods sold and ending inventory using weighted average. (Round the weighted average cost per unit to three decimal places, e.g. 5.275 and final answers to 0 decimal places, e.g. 5,275.)
Average | ||
Cost of goods sold | $ | |
Ending inventory | $ |
Prepare journal entries to record the June 6 purchase and the October 18 sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round the average cost per unit to three decimal places, e.g. 5.275 and final answers to 0 decimal places, e.g. 5,275.)
Date | Account Titles and Explanation | Debit | Credit |
June 6 | |||
(To record purchase on account.) | |||
Oct. 18 | |||
(To record sales on account.) | |||
Oct. 18 | |||
(To record cost of goods sold.) |
Calculate gross profit for the year. (Round answer to 0 decimal places, e.g. 5,275.)
Gross profit | $ |
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