Question
Johnson Inc. is a wholesale company selling special parts for the automotive industry. The company uses weighted-average and a perpetual inventory system. Its inventory records
Johnson Inc. is a wholesale company selling special parts for the automotive industry. The company uses weighted-average 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 Purchased | Unit Cost | Units Sold | Unit Selling Price |
| May 1 | Balance | 120 | $7.00 |
|
|
| May 10 | Purchase | 500 | $7.20 |
|
|
| May 15 | Sale |
|
| (100) | $12.40 |
| May 21 | Sale |
|
| (150) | $12.50 |
| May 23 | Purchase | 250 | $7.30 |
|
|
Required:
- Assuming Johnson Inc. makes all sales and purchases of inventory on account, prepare the journal entries for each of the above listed transactions.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Healthcare Fraud Auditing And Detection Guide
Authors: Rebecca S. Busch
1st Edition
0470127104, 978-0470127100
