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Boston Beaches , Inc . , carries a line of titanium cameras. Boston Beaches , Inc . , uses the average cost method and a
Boston BeachesInc carries a line of titanium cameras. Boston BeachesInc uses the average cost method and a perpetual inventory system. The sales price of each camera is $ Company records indicate the following activity for cameras for the month of July:
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Part
Requirement Prepare a perpetual inventory record for the cameras on the average cost basis to determine the cost of ending inventory and cost of goods sold for the month. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
Part Part Part Part Part
Avg Cost:
Purchases
Cost of goods sold
Inventory on hand
Unit
Total
Unit
Total
Unit
Total
Date
Qty
Cost
Cost
Qty
Cost
Cost
Qty
Cost
Cost
Jul
Total
Part
Requirement Journalize the inventory transactions for Boston BeachesInc using the perpetual average cost method. Assume all purchases and sales are on account. Record debits first, then credits. Exclude explanations from any journal entries.
July : Purchased cameras for $ per camera.
Journal Entry
Date
Accounts
Debit
Credit
Jul
Part
July : Sold cameras.
Begin by journalizing the revenue from the sale of cameras on account. Do not journalize the cost related to the sale yet. We will do this in the next journal entry.
Journal Entry
Date
Accounts
Debit
Credit
Jul
Part
July : Sold cameras.
Now journalize the cost of the cameras sold.
Journal Entry
Date
Accounts
Debit
Credit
Jul
Part
July : Purchased cameras for $ per camera.
Journal Entry
Date
Accounts
Debit
Credit
Jul
Part
July : Sold cameras.
Begin by journalizing the revenue from the sale of cameras on account. Do not journalize the cost related to the sale yet. We will do this in the next journal entry.
Journal Entry
Date
Accounts
Debit
Credit
Jul
Part
July : Sold cameras.
Now journalize the cost of the cameras sold.
Journal Entry
Date
Accounts
Debit
Credit
Jul
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