Question

Question 1 (20 marks) Brilliant Company uses the periodic inventory system. The company's beginning inventory and later purchases of irrventory during June 2020 were as below. Jun 01: Beginning inventory. 45 units @ $25 per unit Jun 17. Inventory purchased, 80 units@ $28 per unit. Jun 25. Inventory purchased, 65 units @ $32 per unit. Brilliant company sold 100 units during the month of June 2020. Required: a Calculate the cost of goods sold and ending inventory for June 2020 using both the Weighted Average cost and First in, first out (FIFO) method. (14 marks) b. Also record the journal entries for the June 17 purchase of inventory and when 55 units from this lot were sold for $45 each Assume both purchase of inventory and its sale are on account (6 marks)

Answer 1

Date Purchase units Per une Sale units Balance I closing Ture of peonit per unit 45 $25 (45) 25 June 17 particulars Beginning inventory Inventory purchased Inventory purchased $ 28 (55) THT 28 25 $28 June 25 65 $ 32 65 132 О June 30 Sold inventory (160) Mettrod cost of Good sold as per FIFO 45x 25 + 55X28 - $2665 Samsung Triple Camera By Shiva ram -

Date per cinit Closing units Percent per unit Tione os Weighted average method Pastillaus Purchase Sale Unics units Begining inventory 45 $25 (24) inventory Purchased 80 (42) Inventory Purchased 65 $32 (34) 1 1s25 June 17 $ 28 38 $28 June 25 63. 31 $32 June 50 sold - Inventory 45x100 45+80+GS 24 ; Price = 25+28+32 = 63 Samsung Triple Camera By Shiva ram cost of good sold a 24+42 +348 63 - $6300