Question
The company provided the following inventory data for 20X1: Jan 1 Beginning inventory 1,000 units @ $4.00 May 18 Cash Purchase 2,000 units @ $4.50
The company provided the following inventory data for 20X1:
Jan 1 Beginning inventory 1,000 units @ $4.00
May 18 Cash Purchase 2,000 units @ $4.50
Oct 5 Credit Purchase 1,000 units @$4.80
Nov 24 Credit Sales 3,000 units
Dec 1 Credit Purchase 1,000 units @$5.00
The companys reporting date is December 31.
Required (19 marks):
(1) Assume that the company uses perpetual inventory system and weighted average method, prepare journal entries on Oct 5 and Nov 24 (Please do not prepare entries to recognize sales revenue).
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Financial Accounting
Authors: Warren, Reeve, Duchac
12th Edition
1133952410, 9781133952411, 978-1133952428
