Question

Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory purchases, and sales of item A are given in the following table for the first six months of 2017. The company uses a perpetual inventory system: Purchases Sales Number of Units 590 Unit Cost $4.30 Number of Units Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 Sales Price $5.80 390 690 390 $4.40 $4.55 650 $6.00 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that the weighted average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 Record sales on account. Note: Enter debits before credits. Date General Journal Debit Credit January 24 Record entry Clear entry View general journal

Question was answered by another expert but the last two were wrong. All I need solved is those two.

Answer 1

Date	Account title	Debit	credit
March 16	cost of sales	2845.39
	Inventory (4.377528 * 650)		2845.39
June 11	Inventory	1774.5
	Trade payable (390*4.55)		1774.5

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Average cost as calculated on Feb 8 :cost of inventory available for sale /units available for sale

                           = [860+3036 ]/[200+690]

                          = 3896/890

                          = $ 4.377528 per unit

                                  

Date	Unit	Unit cost	Total
Jan 1	590	4.3	2537
Jan 24	-390	4.3	-1677
Inventory as on Jan 24 (After sale)	200	4.3	860
Add:Purchase	690	4.4	3036
Inventory as on Feb 8	200 690	4.3 4.4	860 3036

Under weighted average method ,average cost is computed at the time of every sale and purchase