Innovation Cycles started March with 25 bicycles that cost $65 each On March 16, Innovation purchased 50 bicycles at $80 each. On March 31, Innovation sold 40 bicycles for $100 each Requirements 1. Prepare Innovation Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandise inventory on account 2 Requirement 1. Preparo Innovation Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction Be 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. (Abbreviation used: QTYQuantity. Tot Total) R Innovation Cycles Purchases Cost of Goods Sold Inventory on Hand Date QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost Mar. 1 Mar. 16 Mar 31 Totals Requirement 2. Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandise inventory on account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table) S Innovation Cydes started March with 25 bicycles that cost $65 each On March 16, Innovation purchased 50 bicycles at $80 each. On March 31, Innovation sold 40 Bicycles for $100 each Requirements Prepare Innovation Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method. Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandise inventory on account es 1. 2 me siol Requirement 2. Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandise inventory on account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) March 16: Purchased merchandise inventory on account y Re Debit Accounts and Explanation Dato Credit nt R Mar 16 ng Innovation Cycles started March with 25 bicycles that cost $65 each On March 16, Innovation purchased 50 bicycles at $80 each. On March 31, Innovation sold 40 bicycles for $100 each Requirements 1. Prepare Innovation Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method 2. Journalize the March 16 purchase of merchandise inventory on account and the March 31 sale of merchandise inventory on account. March 31: Sale of merchandise Inventory on account. Begin by preparing the entry to joumalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step, (Assume that Innovation sold the bicycles for $100 cach) Date Accounts and Explanation Debit Credit Mar 31 So IS Innovation Cycles started March with 25 bicycles that cost $65 each. On March 16, Innovation purchased 50 bicycles at $80 each On March 31, Innovation sold 40 bicycles for $100 each Requirements Prepare Innovation Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method Journalize the March 16 purchase of merchandise inventory on account and the March 31 salo of merchandise inventory on account. so les 1 2 me GE asioi Mar 31 is Ty Rd nt R ing Now joumalize the expense related to the March 31 sale Review the perpetual inventory record you prepared in Requirement 1 Date Accounts and Explanation Debit Credit Mar 31
