You are given the following information for Swan Valley Company for the month ended June 30, 2021:

Apply perpetual moving average

Date Description Units Unit Price

June 1 Beginning inventory 20 $50

4 Purchase 85 55

10 Sale (90)

18 Purchase 35 58

25 Sale (30)

28 Purchase 15 60

Swan Valley Company uses a perpetual inventory system. All sales and purchases are on account.

Instructions

a. Calculate the cost of goods sold and the ending inventory using weighted average, (Round the weighted average cost per unit to two decimal places.) using the nine column schedule.

b. Assume the sales price was $90 per unit for the goods sold on June 10, and $95 per unit for the sale on June 25. Prepare journal entries to record the June 10 sale and the June 18 purchase.

c. Prepare Income Statement down to Gross Profit