Given the following information, determine the journal entries: a. using the wei

Question

Given the following information, determine the journal entries:    

a. using the weighted average perpetual inventory method.

b. using the LIFO perpetual inventory method.

c. using the FIFO perpetual inventory method.

March beginning inventory is 5 units at $6 per unit.             

March 3: 15 units were purchased at $7 per unit.
March 11: 10 units were purchased at $9 per unit.

March 15: 20 units were sold at $15 per unit.

March 18: 35 units were purchased at $10 per unit.
March 31: 30 units were sold at $20 per unit.

Required        

1) compute the cost of goods sold on March 15 and March 31 for a, b, c.

2) compute the ending inventory for a, b, c.

3) make the journal entries necessary for March 15 and March 31 for a. b. c.  

CALCULATE JOURNAL ENTRIES FROM ABOVE INFORMATION:

JOURNAL ENTRIES:

b.

example for a, b, and c

b.

Explanation / Answer

Date Purchased Units Purchase Price Sold Units Sale Price Date Purchased Units Purchase Price Tota Price Beginning 5 6 Beginning 5 6 30 March 3 15 7 March 3 15 7 105 March 11 10 9 March 11 10 9 90 March 15 20 15 Total 30 225 March 18 35 10 Average Price on 15th March 225/30=7.5 March 31 30 20 Average Price as on 15th March Date Purchased Units Purchase Price Tota Price FIFO LIFO Average March 11 10 7.5 75 Cost of Goods Sold 15th March (5*6)+(15*7) (10*9)+(10*7) 20*7.5 March 18 35 10 350 135 160 150 Total 45 425 Average Price on 31st March 425/45=9.44 9.444444 Cost of Goods Sold 31st March (10*9)+(20*10) (30*10) 30*9.44 290 300 283 Ending Inventory 15*10 (5*10)+(5*7)+(5*6) (15*9.44) 150 115 142 Journal: Sale 15th March Cash (20*15) 300 300 300 Sale 300 300 300 COGS 15th March Cost of Goods Sold Debit 135 160 150 Inventory Credit 135 160 150 Sale 31st March Cash (30*20) 600 600 600 Sale 600 600 600 COGS 31st March Cost of Goods Sold Debit 290 300 283 Inventory Credit 290 300 283

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