Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What would be the correct transaction for March 16? Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory,
What would be the correct transaction for March 16?
Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in the following table for the first six months of the current year. The company uses a perpetual inventory system: Date Purchases Number of Units Unit Cost 550 $3.50 Sales Number of Units Sales Price 350 $5.00 January 1 (beginning inventory) January 24 February 8 March 16 June 11 650 $3.60 350 $5.00 650 $3.60 Required: 1. Compute the cost of ending inventory by using the weighted average costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Ending inventory $ 4,128.00 2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Gross profit $ 1,035.00 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and purchase transactions are on account and that the weighted average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Date General Journal Credit Debit 1,750.00 1 January 24 Accounts receivable Sales 1,750.00 2 January 24 Cost of sales 1,225.00 oo Inventory 1,225.00 3 February 08 2,340.00 Inventory Accounts payable 2,340.00 4 March 16 Accounts receivable 1,750.00 Sales 1,750.00 5 March 16 Cost of sales 1,540.00 Inventory 1,540.00 X 6 June 11 2,340.00 Inventory Accounts payable 2,340.00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started