BE6–18 At the beginning of the year, Seller Company had 700 units with a cost of $3 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:

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BE6–18 At the beginning of the year, Seller Company had 700 units with a cost of $3 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:

Calculate inventory ratios.

(SO 6) AP

Compare inventory ratios.

(SO 6) C

Apply periodic cost FIFO and average. (SO 7) AP

Record transactions using periodic FIFO and average. (SO 2, 7) AP

Apply gross profit method.

(SO 8) AP

Apply retail inventory method. (SO 8) AP

Identify items in inventory.

(SO 1) K

Determine correct inventory amount. (SO 1) AP

Jan. 3 9 15

Sold 550 units on account for $6 each. Purchased 1,000 units on account for $4 per unit. Sold 850 units for cash for $7 each.

Prepare journal entries to record the January transactions assuming that Seller Company uses a periodic inventory system under (a) FIFO and (b) average.

accounting business

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BE6–18 At the beginning of the year, Seller Company had 700 units with a cost of $3 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:

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