ABBA uses the weighted average inventory cost flow assumption under the perpetual inventorysystem. The following transactions took place in January 2018.UnitSellingPrice/DateUnitsCost2,000 $0.50Jan. 1 Opening Inventory5 Sale #16 Purchase #15.001,2001,0002.0010 Purchase #25001.0016 Sale #22,0006.0021 Purchase #31,0002.50All sales are made on account. Round all per unit costs to two decimal places.Required:a. Record the journal entry for the January 5 sale. Show calculations for cost of goods sold.

Journal entry - It refers to the process where the business transactions are recorded in the books…

ABBA uses the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in January 2018. Unit Selling Price/ Date Units Cost 2,000 $0.50 Jan. 1 Opening Inventory 5 Sale #1 6 Purchase #1 1,200 1,000 5.00 2.00 10 Purchase #2 500 1.00 16 Sale #2 2,000 1,000 6.00 21 Purchase #3 2.50 All sales are made on account. Round all per unit costs to two decimal places. Required: a. Record the journal entry for the January 5 sale. Show calculations for cost of goods sold.

ABBA uses the weighted average inventory cost flow assumption under the perpetual inventory system. The following transactions took place in January 2018. Unit Selling Price/ Date Units Cost 2,000 $0.50 Jan. 1 Opening Inventory 5 Sale #1 6 Purchase #1 1,200 1,000 5.00 2.00 10 Purchase #2 500 1.00 16 Sale #2 2,000 1,000 6.00 21 Purchase #3 2.50 All sales are made on account. Round all per unit costs to two decimal places. Required: a. Record the journal entry for the January 5 sale. Show calculations for cost of goods sold.

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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