prepare the entries to recognize the following transactions for ABC Company with
ID: 2544946 • Letter: P
Question
prepare the entries to recognize the following transactions for ABC Company with respect to Inventory Item # 1234
Date
Transaction
Quantity
Purchase Price
Selling Price
1/1/17
Beginning Inventory
1,500
$10
1/10/17
Purchase
2,500
$15
1/12/17
Sale
(3,000)
$30
1/19/17
Purchase
2,000
$20
1/23/17
Sale
(500)
$31
1/29/17
Sale
(1,700)
$34
Use separate T-account templates to prepare the entries under the following criteria:
a. Periodic system, FIFO cost flow method
b. Perpetual system, FIFO cost flow method
c. Periodic system, LIFO cost flow method
d. Perpetual system, LIFO cost flow method
Date
Transaction
Quantity
Purchase Price
Selling Price
1/1/17
Beginning Inventory
1,500
$10
1/10/17
Purchase
2,500
$15
1/12/17
Sale
(3,000)
$30
1/19/17
Purchase
2,000
$20
1/23/17
Sale
(500)
$31
1/29/17
Sale
(1,700)
$34
Explanation / Answer
a. Periodic system, FIFO cost flow method
b). Perpetual system, FIFO cost flow method
Date
c. Periodic system, LIFO cost flow method
d). Perpetual system, LIFO cost flow method
Date
Units Available for Sale = 1500+2500+2000 6000 Units Sold = 3000+ 500+ 1700 5200 Units in Ending Inventory = 6000 - 5200 800Related Questions
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