Question

Please complete S6-4,5, and 6.

ive 2 ng the company uses S6-4 Preparing a perpetual inventory record and journal entries—FIFO Requirements 1. Prepare Montana Cycle's perpetual inventory record assuming the come the FIFO inventory costing method. 2. Journalize the July 16 purchase of merchandise inventory on account and the La sale of merchandise inventory on account. 2 S6-5 Preparing a perpetual inventory record and journal entries—LIFO Requirements 1. Prepare Montana Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method. 2. Journalize the July 16 purchase of merchandise inventory on account and the July 31 sale of merchandise inventory on account.

Given:

Answer 1

Montana Cycles Perpetual Inventory System S6-4 Inventory sheet - FIFO Purchases Date QuantityCost per unit Total cost 1-Jul 16-Jul 35 $ 60.00 $ 2,100 Cost of goods sold Cost per unit Total cost Quantity Inventory on hand Quantity Cost per unit Total cost 25 $ 36.00 $ 900 25 $ 36.00 $ 900 35 $ 60.00 $ 2,100 $ 3,000 60 31-Jul 25 8 $ $ 36.00 60.00 $ $ $ 900 480 1,380 $ 60.00 27 27 $ $ 1,620 1,620 Totals $ 2,100

Debit Credit Calculation Montana Cycles Journal entries Date Account S6-4 FIFO 16-Jul Inventory Accounts Payable (To record purchase of inventory) $ 2,100 =35*60 $ 2,100 $ 3,465 =33*105 31-Jul Accounts Receivable Sales (To record sale of goods) $ 3,465 $ 1,380 31-Jul Cost of goods sold Inventory (To record cost of goods sold) $ 1,380

S6-5 Inventory sheet - LIFO Purchases Date Quantity Cost per unit Total cost Quantity Cost of goods sold Cost per unit Total cost 1-Jul 16-Jul 35 $ 60.00 $ 2,100 Inventory on hand Quantity Cost per unit Total cost 25 $ 36.00 $ 900 25 $ 36.00 $ 900 35 $ 60.00 $ 2,100 60 $ 3,000 25 $ 36.00 $ 900 2 $ 60.00 $ 120 $ 1,020 31-Jul 33 $ 60.00 $ 1,980 Totals 35 $ 2,100 $ 1,980 27

Debit Credit Calculation Date Account S6-5 LIFO 16-Jul Inventory Accounts Payable (To record purchase of inventory) $ 2,100 =35*60 $ 2,100 $ 3,465 =33*105 31-Jul Accounts Receivable Sales (To record sale of goods) $ 3,465 $ 1,980 31-Jul Cost of goods sold Inventory (To record cost of goods sold) $ 1,980

S6-6 Inventory sheet - Weighted Average Purchases Date Quantity Cost per unit Total cost Quantity Cost of goods sold Cost per unit Total cost 1-Jul 16-Jul 35 $ 60.00 $ 2,100 Inventory on hand Quantity Cost per unit Total cost 25 $ 36.00 $ 900 25 $ 36.00 $ 900 35 $ 60.00 $ 2,100 60 $ 50.00 $ 3,000 27 $ 50.00 $ 1,350 27 50.00 $ 1,350 33 $ 50.00 31-Jul Totals $ $ 1,650 1,650 35 $ 2,100 33

Debit Credit Calculation Date Account S6-6 Weighted Average 16-Jul Inventory Accounts Payable (To record purchase of inventory) $ 2,100 =35*60 $ 2,100 $ 3,465 =33*105 31-Jul Accounts Receivable Sales (To record sale of goods) $ 3,465 $ 1,650 31-Jul Cost of goods sold Inventory (To record cost of goods sold) $ 1,650