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Idaho Inc. is a wholesale company selling special parts for the automotive industry. The company uses FIFO and a perpetual inventory system. Its inventory records

Idaho Inc. is a wholesale company selling special parts for the automotive industry. The company uses FIFO and a perpetual inventory system. Its inventory records for part SA-123 show the following transactions for the month of May 2020:

Date

Transaction

Units

Unit

Units

Unit

Purchased

Cost

Sold

Selling

Price

May 1

Balance

180

$10.50

May 10

Purchase

750

$10.80

May 15

Sale

(150)

$18.60

May 20

Purchase

150

$11.03

May 21

Sale

(225)

$18.75

May 23

Purchase

375

$11.10

Instructions

  1. Assuming Idaho makes all sales and purchases of inventory on account, prepare the journal entries for each of the above listed transactions.
  2. Now assume Idaho uses the average cost method, prepare the journal entries.

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