Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the perpetual inventory system. The following transactions took place in January 2015 ABBA uses (30 marks,5 marks each Units Selling Price/ Date Unit Cost $0.50

image text in transcribed

the perpetual inventory system. The following transactions took place in January 2015 ABBA uses (30 marks,5 marks each Units Selling Price/ Date Unit Cost $0.50 Jan. 1 Opening Inventory 2,000 5 Sale #1 1,200 5.00 6 Purchase #1 1,000 2.00 10 Purchase #2 500 1.00 16 Sale #2 2,000 6.00 21 Purchase #3 1,000 2.50 Assume all sales are made on account. Required: 1. Assume ABBA uses the FIFO inventory cost flow assumption a. Record the journal entry for the January 5 sale. Show calculations for cost of goods sold. b. Record the journal entry for the January 16 sale. Show calculations for cost of goods sold. c. Calculate ending inventory in units, cost per unit, and total cost. 2. Assume ABBA uses the weighted average inventory cost flow assumption a. Record the journal entry for the January 5 sale. Show calculations for cost of goods sold. b. Record the journal entry for the January 16 sale. Show calculations for cost of goods sold. c. Calculate ending inventory in units, cost per unit, and total cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Purchasing Audit

Authors: ISMAIL LAMHAMDI

1st Edition

6203507563, 978-6203507560

More Books

Students also viewed these Accounting questions

Question

Describe a sample ES application for prediction.

Answered: 1 week ago

Question

Classify delivery styles by type.

Answered: 1 week ago