Question

1. In preparing your journal/adjusting entries, use the following chart of accounts and choose the corresponding letter in making your entries: Letter Account Title Letter Account Title A Cash Purchases Accounts Receivable Freight In с Inventory, December 31 1 Operating Expenses D Allowance for Inventory Writedown J Income Summary E Accounts Payable K Gain on Recovery of Inventory Writedown F Sales L Loss on Inventory Write down G H B

Answer 1

1.Weighted Average Method -

Weighted Average Method Purchase Cost of Goods Sold Unit Cost Total Cost Units Unit Cost Total Cost Date Particulars Units 2,500 102.75 256,875 5,000 101.32 506,620 102.75 Dec 01 Beginning Dec 05 Purchase Dec 11 Sale Dec 14 Purchase Return Dec 20 Purchase Dec 23 Sales Return Dec 25 Purchase Dec 29 Sale Dec 30 Purchase Return (1,000) 3,000 (102,750) 301,500 Units 11,000 13,500 8,500 7,500 10,500 11,250 11,750 7,250 6,400 Balance Unit Cost Total Cost 101.00 1,111,000 101.32 1,367,875 101.32 861,255 101.13 758,505 100.95 1,060,005 100.98 1,135,998 100.99 1,186,623 100.99 732,171 101.04 646,655 100.50 (750) 101.32 (75,993) 500 101.25 50,625 4,500 100.99 454,451 (850) 100.61 (85,516) 4,150 101 420,734 8,750 101 885,079 6,400 101 646,655