Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flounder Corporation opened a new store on January 1, 2021. During 2021, the first year of operations, the following purchases and sales of inventory were

Flounder Corporation opened a new store on January 1, 2021. During 2021, the first year of operations, the following purchases and sales of inventory were made:

Purchases Sales
Date Units Cost per unit Date Units Price per unit
Jan. 5 11 $ 1,100 July 4 13 $ 2,000
June 11 11 1,250 Dec. 29 35 2,000
Oct. 18 15 1,360
Dec. 20 20 1,550

Assume Flounder uses weighted average periodic. Calculate the cost of ending inventory, cost of the goods sold, and gross profit. (Round the weighted average cost per unit to two decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275.)

Ending inventory $
Cost of goods sold $
Gross profit

$

Assume Flounder uses weighted average perpetual. Calculate the cost of ending inventory, cost of the goods sold, and gross profit. (Round the weighted average cost per unit to two decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275.)

Ending inventory $
Cost of goods sold $
Gross profit $

Prepare journal entries to record the December 20 purchase and the December 29 sale using (1) weighted average periodic and (2) weighted average perpetual. Assume both the sale and purchase were for cash. (Round final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. (1) Weighted Average periodic

Date

Account Titles and Explanation

Debit

Credit

Dec. 20

(To record cash purchase.)

Dec. 29

(To record cash sale.)

(2) Weighted Average perpetual

Date

Account Titles and Explanation

Debit

Credit

Dec. 20

(To record cash purchase.)

Dec. 29

(To record cash sales.)

Dec. 29

(To record cost of goods sold.)

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

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

9th Canadian Edition

978-1119786818, 1119786819

More Books

Students also viewed these Accounting questions