Question
The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2020. Beginning 521 units @ $88/unit Feb. 10
The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2020.
Beginning | 521 units @ $88/unit | |||||
Feb. 10 | 265 units @ $85/unit | |||||
Aug. 21 | 145 units @ $98/unit | |||||
Stilton Company has two credit sales during the period. The units have a selling price of $148 per unit.
Sales | ||
Mar. | 15 | 345 units |
Sept. | 10 | 250 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.) 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: | 179 | units from beginning inventory |
166 | units from the February 10 purchase | ||
Sept. | 10: | 174 | units from beginning inventory |
23 | units from the February 10 purchase | ||
53 | units from the August 21 purchase | ||
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
-
1
Record the purchase of inventory on credit.
-
2
Record a credit sale.
-
3
Record the sale of merchandise.
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.)
-
1
Record the purchase of inventory on credit.
-
2
Record a credit sale.
-
3
Record the sale of merchandise. c. Specific identification
-
1
Record the purchase of inventory on credit.
-
2
Record a credit sale.
-
3
Record the sale of merchandise.
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