Question
Recording Purchase Entry Using Relative Sales Value Method Bick Company purchased 4,160 bushels of ungraded apricots for $8,640. The apricots were sorted as follows: grade
Recording Purchase Entry Using Relative Sales Value Method
Bick Company purchased 4,160 bushels of ungraded apricots for $8,640. The apricots were sorted as follows: grade 1, 1,600 bushels; grade 2, 1,120 bushels; and grade 3, 1,440 bushels. The current market prices for graded apricots follow: grade 1, $5 per bushel; grade 2, $3 per bushel; and grade 3, $1 per bushel. The company uses a perpetual inventory system. Prepare the entry to record the purchase.
Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
| Accounts Name | Dr. | Cr. |
|---|---|---|
| InventoryGrade 1 | Answer | Answer |
| InventoryGrade 2 | Answer | Answer |
| InventoryGrade 3 | Answer | Answer |
| Accounts Payable | Answer | Answer |
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Hospitality Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.
2nd Edition
9780470598092, 470083603, 978-0470083604
