Unit | Unit Cost | Total Cost | |
Beginning inventory | 400 | 4 | 1600 |
May 4 Purchase | 1300 | 4.10 | 5330 |
May 14 Purchase | 700 | 4.40 | 3080 |
May 29 | 500 | 4.75 | 2375 |
Total | 2900 | 12385 |
Sales unit = 300+1000+400 = 1700
a) Cost of goods sold = 1600+5330 = 6930
Ending inventory = 3080+2375 = 5455
b) Journal entry
Date | General journal | Debit | Credit |
May 4 | Merchandise inventory (1300*4.10) | 5330 | |
Account payable | 5330 | ||
(To record purchase) | |||
May 3 | Account receivable (300*7) | 2100 | |
Sales revenue | 2100 | ||
(To record sales) | |||
Cost of goods sold (300*4) | 1200 | ||
Merchandise inventory | 1200 | ||
(To record sales) |
May 16 | Account receivable (1000*7) | 7000 | |
Sales revenue | 7000 | ||
(To record sales) | |||
Cost of goods sold (100*4+900*4.1) | 4090 | ||
Merchandise inventory | 4090 | ||
(To record sales) |
c) Gross profit = Sales revenue-Cost of goods sold = 9100- 5290 = 3810
mal E6.4 (LO 2) AP On May 1, Black Bear Company had 400 units of inventory...
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E 6.4 on hand, at a cost of $4.00 s are on account. A record record journal gross profit b. Calculate ending inven c. Prepare the journal entry to record the December 22 abil E6.4 (LO 2) AP On May 1, Black Bear Company had 400 units of inventory on hand. each. The company uses a perpetual inventory system. All purchases and sales are on a of inventory transactions for the month of May for the company is as follows:...
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A record of transactions for the month of May was as follows: Purchases Sales May 1 (balance) 430 @ $5.40 May 3 215 @ $7.00 4 1,300 @ $5.30 6 1,030 @ 7.00 8 880 @ $5.50 12 980 @ 7.50 14 780 @ $5.60 18 430 @ 7.50 22 1,260 @ $5.70 25 1,430 @ 8.00 29 600 @ $5.75 Assuming that perpetual inventory records are kept in dollars, determine the ending inventory using LIFO. Ending inventory $