Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2020. Beginning Feb. 10 Aug. 21 584 units

image text in transcribedimage text in transcribedimage text in transcribed

The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2020. Beginning Feb. 10 Aug. 21 584 units @ $83/unit 310 units @ $80/unit 190 units @ $93/unit Stilton Company has two credit sales during the period. The units have a selling price of $143 per unit. Sales Mar 15 390 units Sept. 10 295 units Stilton Company uses a perpetual inventory system. Required: 1. Calculate the dollar value of cost of goods sold and ending inventory using: (Do not round intermediate calculations. Round "Average cost per unit" to 2 decimal places. Round the final answers to 2 decimal places.) Ending Inventory Cost of Goods Sold a. FIFO b. Moving weighted average 2. Calculate the dollar value of cost of goods sold and ending inventory using specific identification, assuming the sales were specifically identified as follows: Mar. 15: 206 units from beginning inventory 184 units from the February 10 purchase Sept.10: 201 units from beginning inventory 32 units from the February 10 purchase 62 units from the August 21 purchase Ending Inventory Cost of Goods Sold Specific Identification 3. Using Information from your answers in Parts 1 and 2 journalize the credit purchase on February 10 and the credit sale on September 10 for each of a. FIFO View transaction list Journal entry worksheet 1 Record the purchase of inventory on credit. Note: Enter debits before credits. General Journal Debit Credit Date February 10 Record entry Clear entry View general journal b. Moving weighted average (Do not round intermediate calculations. Round "Average cost per unit" to 2 decimal places. Round the final answers to nearest whole dollar.) View transaction list Journal entry worksheet Record the purchase of inventory on credit. Note: Enter debits before credits. General Journal Debit Credi Date February 10 Record entry Clear entry View general journal c. Specific identification View transaction list Journal entry worksheet 1 2 3 Record the purchase of inventory on credit. Note: Enter debits before credits. General Journal Debit Credit Date February 10 Record entry Clear entry View general journal

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

Challenge Of Management Accounting Change

Authors: John Burns, Mahmoud Ezzamel, Robert Scapens

1st Edition

075066004X, 978-0750660044

More Books

Students also viewed these Accounting questions