Question
Problem 6-63A Inventory Costing Methods Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the
Problem 6-63A Inventory Costing Methods
Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December for one of the items the company sells:
Activity | Units | Purchase Price (per unit) | Sale Price (per unit) | |||
Beginning inventory | 10 | $6.00 | ||||
Purchase 1, Dec. 2 | 22 | 6.80 | ||||
Purchase 2, Dec. 5 | 26 | 7.50 | ||||
Sale 1, Dec. 7 | 19 | $12.00 | ||||
Sale 2, Dec. 10 | 25 | 12.00 | ||||
Purchase 3, Dec. 12 | 12 | 8.00 | ||||
Sale 3, Dec. 14 | 20 | 12.00 |
Anderson's uses a perpetual inventory system. All purchases and sales were for cash.
Required:
1. Compute cost of goods sold and the cost of ending inventory using FIFO. If required, round your answers to the nearest cent.
Cost of goods sold | $ |
Cost of ending inventory | $ |
2. Compute cost of goods sold and the cost of ending inventory using the weighted average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest penny.)
Cost of goods sold | $ |
Cost of ending inventory | $ |
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Incorrect
3. Prepare the journal entries to record these transactions, assuming Anderson's chooses to use the FIFO method. If required, round your answers to the nearest cent.
Dec. 2 | Inventory | ||
Cash | |||
(Purchased inventory) | |||
Dec. 5 | Inventory | ||
Cash | |||
(Purchased inventory) | |||
Dec. 7 | |||
(Recorded cash sales to customers) | |||
Dec. 7 | |||
(Recorded cost of goods sold) | |||
Dec. 10 | |||
(Recorded cash sales to customers) | |||
Dec. 10 | |||
(Recorded cost of goods sold) | |||
Dec. 12 | |||
(Purchased inventory) | |||
Dec. 14 | |||
(Recorded cash sales to customers) | |||
Dec. 14 | |||
(Recorded cost of goods sold) |
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