1. The Pattasar Electric Appliances company uses perpetual inventory system and first-in, first-out (FIFO) method to calculate cost of goods sold and for the ending inventory valuation. The company has made the following purchases and sales during the month of February 2018. Feb. 01: Inventory at the beginning of the month; 24 units @ $1,000 per unit. Feb. 04: Sales: 16 units. Feb. 07: Purchases; 12 units @ $1,020 per unit. Feb. 10: Purchases; 10 units @ $1,050 per unit. Feb. 14: Sales; 16 units. Feb. 23: Sales; 12 units. During the month, all sales have been made @ $1600 per unit. Instruction 1. Compute the cost of goods sold and the cost of inventory in hand at the end of the month of February 2018. 2. Prepare journal entries to record the above transactions under perpetual inventory system.

1. The Pattasar Electric Appliances company uses perpetual inventory system and first-in, first-out (FIFO) method to calculate cost of goods sold and for the ending inventory valuation. The company has made the following purchases and sales during the month of February 2018. Feb. 01: Inventory at the beginning of the month; 24 units @ $1,000 per unit. Feb. 04: Sales: 16 units. Feb. 07: Purchases; 12 units @ $1,020 per unit. Feb. 10: Purchases; 10 units @ $1,050 per unit. Feb. 14: Sales; 16 units. Feb. 23: Sales; 12 units. During the month, all sales have been made @ $1600 per unit. Instruction 1. Compute the cost of goods sold and the cost of inventory in hand at the end of the month of February 2018. 2. Prepare journal entries to record the above transactions under perpetual inventory system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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