Question

Weston Technologies Inc began 2017 with inventory of $24000 During the year. Weston purchased intory conting $130 000 and sold goods for $15.000 Wedon prepared the following journal entries under the periodic inventory system at year and Click the icon to view the journal entries.) ha actions on account W onded they we r Requirements 1. Post to the Inventory and cost of Goods Sold accounts 2. Compute cost of goods sold by the cost of goods sold model 3. Prepare the December 2017 income watement of Weston Technologies in though grosso Requirement 1. Post the beginning balances and all tries to the inventory and cost of Good S o ns Leave used Cost of Goods Sold Requirement 2. Come cost of goods sold by the cost of good old model Coel of gode od Requirement. Prepare the December 2017 income statement of Weston Technologie in rough gros pro

Answer 1

Part 1:

Inventory
To Inventory Balance	24,000	By COGS	24,000
To COGS	36,000
Ending Balance			36,000
Cost of Goods Sold
To Inventory	24,000	By Inventory	36,000
To Purchase	130,000
Ending Balance			118,000

Part 2:

Computation of Cost of Goods Sold
Opening Stock	24,000
Purchase	130,000
Available	154,000
Sold (#1)	118,000
Closing Balance	36,000

Note 1:

Opening Stock	24,000
Purchase	130,000
Available	154,000
Closing Balance	36,000
Cost of Goods Sold	118,000

Part 3:

Wexton Technlogies
Income Statement for Dec 31, 2017
Particulars	$
Selling Price	155,000
Less: Cost of Goods Sold	118,000
Gross Profit	37,000