Recording inventory transactions using the perpetual system:intermittent sales and purchases
The following inventory transactions apply to TNT Company for 2011.
Jan. 1 | Purchased | 250 units @ $10 |
Apr. 1 | Sold | 125 units @ $18 |
Aug. 1 | Purchased | 400 units @ $11 |
Dec. 1 | Sold | 500 units @ $19 |
The beginning inventory consisted of 175 units at $11 per unit. All transactions are cash transactions.
Required
a. Record these transactions in general journal format assuming TNT uses the FIFO cost flow assumption and keeps perpetual records.
b. Compute the ending balance in the Inventory account.
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