Northgate Products Corp. sells gadgets and uses the perpetual inventory system. During the month of June 2023, the number of gadgets purchased and sold was as follows:
Purchased
Sold
Balance in inventory
Date
Units
Unit cost
Total $
Units
Unit cost
Total $
Units
Unit cost
Total $
June. 1
100
$1
3
500
$4
8
500
$6
10
200
15
400
$7
20
500
27
400
$7
Units were sold for the following amount:
June 10
$11
June 20
$12
Required: Note: USE Excel for linking the numbers and use formulas in Excel for any calculations.
1
Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions:
a. FIFO (see sheet Q2 Req 1a FIFO)
b. Weighted average (see sheet Q2 Req 1b WeightAvg)
2
Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary. (see sheet Q2 Req 2)
Instructions - Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary. Note: USE Excel for linking the numbers to the Q3 Req 1a FIFO sheet and use formulas in Excel for any calculations.
Date
Account
Debit
Credit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
