Question
Cinderella Corporation (CC) uses a perpetual inventory system and uses moving average cost to assign cost to their inventory and cost of goods sold. CC
Cinderella Corporation (CC) uses a perpetual inventory system and uses moving average cost to assign cost to their inventory and cost of goods sold. CC has recorded the following transactions in the 2022 fiscal year.
Date Transactions Units Unit costs
Jan. 1 Opening inventory 100 4.0
Mar. 15 Purchase 500 5.0
June 28 Purchase 100 5.50
Nov.3 Sale (sold at $10 each) (425)
Required:
a) Calculate the number of units and the dollar amounts for the following (show your work!):
- Ending inventory
- Cost of goods sold
b) Prepare the journal entries related to the sale on November 3.
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Introduction to Financial Accounting
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
11th edition
978-0133251111, 013325111X, 0133251039, 978-0133251036
