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Question 2 Inventory Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of June 2023, the number of gadgets purchased
| Question 2 Inventory | ||||||||||
| Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of June 2023, the number of gadgets purchased and sold was as follows: | ||||||||||
| Purchased | Sold | Balance in inventory | ||||||||
| Date | Units | Unit cost | Total $ | Units | Unit cost | Total $ | Units | Unit cost | Total $ | |
| June. 1 | 100 | $1 | ||||||||
| 3 | 500 | $4 | ||||||||
| 8 | 500 | $6 | ||||||||
| 10 | 200 | |||||||||
| 15 | 400 | $7 | ||||||||
| 20 | 500 | |||||||||
| 27 | 400 | $7 | ||||||||
| Units were sold for the following amount: | ||||||||||
| June 10 | $11 | |||||||||
| June 20 | $12 | |||||||||
| Required: Note: USE Excel for linking the numbers and use formulas in Excel for any calculations. | ||||||||||
| 1 | Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: | |||||||||
| a. FIFO (see sheet Q2 Req 1a FIFO) | ||||||||||
| b. Weighted average (see sheet Q2 Req 1b WeightAvg) | ||||||||||
| 2 | Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary. (see sheet Q2 Req 2) | |||||||||
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