PART ONE: a. using the weighted average perpetual inventory method. b. using the

Question

PART ONE:

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.

PART TWO :

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:

Explanation / Answer

Answer 1 & 2. Weighted Average Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Mar               5.00               6.00             30.00 3-Mar             15.00                 7.00            105.00               5.00               6.00             30.00             15.00               7.00           105.00             20.00               6.75           135.00 11-Mar             10.00                 9.00              90.00             20.00               6.75           135.00             10.00               9.00             90.00             30.00               7.50           225.00 15-Mar             20.00               7.50            150.00             10.00               7.50             75.00 18-Mar             35.00               10.00            350.00             10.00               7.50             75.00             35.00             10.00           350.00             45.00               9.44           425.00 31-Mar             30.00               9.44            283.33             15.00               9.44           141.67 Total             60.00            545.00             50.00            433.33 LIFO Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Mar               5.00               6.00             30.00 3-Mar             15.00                 7.00            105.00               5.00               6.00             30.00             15.00               7.00           105.00             20.00           135.00 11-Mar             10.00                 9.00              90.00               5.00               6.00             30.00             15.00               7.00           105.00             10.00               9.00             90.00             30.00               7.50           225.00 15-Mar             10.00               9.00              90.00               5.00               6.00             30.00             10.00               7.00              70.00               5.00               7.00             35.00             20.00            160.00             10.00             65.00 18-Mar             35.00               10.00            350.00               5.00               6.00             30.00               5.00               7.00             35.00             35.00             10.00           350.00             45.00               9.22           415.00 31-Mar             30.00             10.00            300.00               5.00               6.00             30.00               5.00               7.00             35.00               5.00             10.00             50.00             15.00           115.00 Total             60.00            545.00             50.00            460.00 FIFO Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Mar               5.00               6.00             30.00 3-Mar             15.00                 7.00            105.00               5.00               6.00             30.00             15.00               7.00           105.00             20.00           135.00 11-Mar             10.00                 9.00              90.00               5.00               6.00             30.00             15.00               7.00           105.00             10.00               9.00             90.00             30.00               7.50           225.00 15-Mar               5.00               6.00              30.00             10.00               9.00             90.00             15.00               7.00            105.00             20.00            135.00 18-Mar             35.00               10.00            350.00             10.00               9.00             90.00             35.00             10.00           350.00             45.00               9.78           440.00 31-Mar             10.00               9.00              90.00             15.00             10.00           150.00             20.00             10.00            200.00             30.00            290.00 Total             60.00            545.00             50.00            425.00 Answer 3. Journal Entry Weighted Average Method Date Particulars Dr. Amt. Cr. Amt. 3-Mar Inventory          105.00     Accounts Payable / Cash            105.00 (To record the purcahse of inventory) 11-Mar Inventory            90.00     Accounts Payable / Cash              90.00 (To record the purcahse of inventory) 15-Mar Accounts Receivable / Cash          300.00     Sales            300.00 (To record the sales) Cost of Goods Sold          150.00    Inevntory            150.00 (To record the Cost of Goods Sold) 18-Mar Inventory          350.00     Accounts Payable / Cash            350.00 (To record the purcahse of inventory) 31-Mar Accounts Receivable / Cash          600.00     Sales            600.00 (To record the sales) Cost of Goods Sold          283.33    Inevntory            283.33 (To record the Cost of Goods Sold) Journal Entry LIFO Date Particulars Dr. Amt. Cr. Amt. 3-Mar Inventory          105.00     Accounts Payable / Cash            105.00 (To record the purcahse of inventory) 11-Mar Inventory            90.00     Accounts Payable / Cash              90.00 (To record the purcahse of inventory) 15-Mar Accounts Receivable / Cash          300.00     Sales            300.00 (To record the sales) Cost of Goods Sold          160.00    Inevntory            160.00 (To record the Cost of Goods Sold) 18-Mar Inventory          350.00     Accounts Payable / Cash            350.00 (To record the purcahse of inventory) 31-Mar Accounts Receivable / Cash          600.00     Sales            600.00 (To record the sales) Cost of Goods Sold          300.00    Inevntory            300.00 (To record the Cost of Goods Sold) Journal Entry FIFO Date Particulars Dr. Amt. Cr. Amt. 3-Mar Inventory          105.00     Accounts Payable / Cash            105.00 (To record the purcahse of inventory) 11-Mar Inventory            90.00     Accounts Payable / Cash              90.00 (To record the purcahse of inventory) 15-Mar Accounts Receivable / Cash          300.00     Sales            300.00 (To record the sales) Cost of Goods Sold          135.00    Inevntory            135.00 (To record the Cost of Goods Sold) 18-Mar Inventory          350.00     Accounts Payable / Cash            350.00 (To record the purcahse of inventory) 31-Mar Accounts Receivable / Cash          600.00     Sales            600.00 (To record the sales) Cost of Goods Sold          290.00    Inevntory            290.00 (To record the Cost of Goods Sold)

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