Question 3

A high-tech company operates globally and deals with multiple products. They use a sophisticated moving average inventory system due to frequent price fluctuations and international supply chain complexities.

At the beginning of the year, they had 600 units of Product A at $120 each. Throughout the year, they had various purchases and sales:

Purchases:

March: Purchased 300 units of Product A at $130 each.

May: Purchased 200 units of Product A at $125 each and 150 units of Product B at $180 each. August: Purchased 400 units of Product A at $140 each and 100 units of Product B at $190 each. Sales:

April: Sold 200 units of Product A.

June: Sold 150 units of Product A and 50 units of Product B. September: Sold 100 units of Product A and 70 units of Product B. Calculate:

Moving Average Cost: Calculate the moving average cost after each purchase for both Product A and Product B.

Cost of Goods Sold (COGS): Determine the total COGS for both products by the end of the year. Ending Inventory Value: Calculate the total value of the ending inventory for both products.

Question 4

ABC Corporation sells its products to diverse customer base. During the year, the company had total credit sales of $5,000,000. The companys average accounts receivable balance was $800,000. The companys credit terms allow customers 45 days to pay their invoices. Calculate the average collection period in days and assess the companys efficiency in managing its accounts receivable.

Question 5

On January 1st, 2023, XYZ Company provides consulting services to ABC Corporation on credit, amounting to $50,000. The credit terms are 30 days. On January 15, 2023, ABC Corporation makes a partial payment of $20,000. On January 31st, 2023, the remaining balance is paid along with an interest charge of 2% for the late payment. Record all necessary journal entries for these transactions.