ABBA uses the perpetual inventory system. The following transactions took place in January 2015.
|
Date |
Units |
Unit Selling Price/Cost |
||
|
Jan. |
1 |
Opening Inventory |
2,000 |
$0.50 |
|
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:
- Assume ABBA uses the FIFO inventory cost flow assumption
- Record the journal entry for the January 5 sale. Show calculations for cost of goods sold.
- Record the journal entry for the January 16 sale. Show calculations for cost of goods sold.
- Calculate ending inventory in units, cost per unit, and total cost.
- Assume ABBA uses the weighted average inventory cost flow assumption
- Record the journal entry for the January 5 sale. Show calculations for cost of goods sold.
- Record the journal entry for the January 16 sale. Show calculations for cost of goods sold.
- Calculate ending inventory in units, cost per unit, and total cost.
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