QUESTION 16

Fly Company uses a perpetual inventory system. Beginning inventory is 2,500 T-shirts ata cost $2.50 per shirt.

During the year Fly had the following inventory transactions:

Purchased

Sold

Purchased

Sold

Purchased

an 12

Feb 18

Jul 1

Aug 29

Dec 19

All purchases and sales are on account.

500 units @ $2.15 per unit

1,350 units $6.50 per unit

1,000 units @$2.65 per unit

1,475 units @$7.50 per unit

500 units @ $3.05 per unit

Instructions

Calculate the cost of goods sold and ending inventory using weighted average. Round per unit

a)

amounts to two decimal places.

b) Prepare journal entries to record theFebruary 18and theAugust 29sales. All sales and