Show Calculation.a. Average cost (COGS:Ending inventory:DateDebitCreditDbCr 2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During thecurrent year, Sea Travel purchased 24 Wings at the following costs.Total costUnit Cost$7000$7100$7250Purchase DateUnits PurchasedMay 2May 20May 25$28,00014,2004858000June 510$73007300024$173,200On May 28, Sea Travel sold 11 Wings to the jack Sport racing team.Computea) the cost of goods sold on May 28 andb) The ending inventory of Wing boats at June 5, using the following cost flow assumptions:c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that thecompany uses the:

Name: Show Calculation.a. Average cost (COGS:Ending inventory:DateDebitCred
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Description: Show Calculation.a. Average cost (COGS:Ending inventory:DateDebitCreditDbCr 2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During thecurrent year, Sea Travel purchased 24 Wings at the following costs.Total cost

Under Average cost method, average cost per unit of inventory will be calculated to calculate cost…

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2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Purchase Date Units Purchased Unit Cost Total cost May 2 May 20 May 25 June 5 4. $7000 $28,000 $7100 14,200 8 $7250 58000 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:

2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Purchase Date Units Purchased Unit Cost Total cost May 2 May 20 May 25 June 5 4. $7000 $28,000 $7100 14,200 8 $7250 58000 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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2) Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the current year, Sea Travel purchased 15 Wings at the following costs. Purchase Date Units Purchased Unit Cost Total cost May 2 4 $7000 $28,000 May 20 2 $7100 14,200 May 25 8 $7250 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a)the cost of goods sold on May 28 and b)The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c)Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the: Show Calculation. a. Average cost COGS: Ending inventory: Date Debit Credit Db Cr b.FIFO COGS: Ending inventory: Date Debit Credit Db Cr…
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