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Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 Purchases Sales Number of Units Unit Cost Number of Units Sales Price 590 $4.30 390 $5.80 690 $4.40 390 $5.80 690 $4.40

Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 Purchases Sales Number of Units Unit Cost Number of Units Sales Price 590 $4.30 390 $5.80 690 $4.40 390 $5.80 690 $4.40

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in the following table for the first six months of the current year. The company uses a perpetual inventory system: Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 Required: Purchases Sales Number of Units Unit Cost Number of Units Sales Price 590 $4.30 390 $5.80 690 $4.40 390 $5.80 690 $4.40 1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Ending inventory
Transcribed Image Text:Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in the following table for the first six months of the current year. The company uses a perpetual inventory system: Date January 1 (beginning inventory) January 24 February 8 March 16 June 11 Required: Purchases Sales Number of Units Unit Cost Number of Units Sales Price 590 $4.30 390 $5.80 690 $4.40 390 $5.80 690 $4.40 1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Ending inventory
Help Save 2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Gross profit 3. Would the gross profit be higher, lower, or the same if Neverstop used the weighted-average costing method rather than the FIFO method? Remain the same ○ Lower O Higher
Transcribed Image Text:Help Save 2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Gross profit 3. Would the gross profit be higher, lower, or the same if Neverstop used the weighted-average costing method rather than the FIFO method? Remain the same ○ Lower O Higher
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26 EhaLbrowser=0&launch Url=https:253A%252F%252Fnewcorrected education on 1726 Saved Help Save & E first account field.) 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and purchase transactions are on account and that the weighted-average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the View transaction list Journal entry worksheet 1 2 3 4 5 6 Record sales on account. Note: Enter debits before credits. Date January 24 General Journal Debit Credit Desk 1 < Prev 3 of 15 Next > 7 e US 23 Mar 6:44
Transcribed Image Text:26 EhaLbrowser=0&launch Url=https:253A%252F%252Fnewcorrected education on 1726 Saved Help Save & E first account field.) 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and purchase transactions are on account and that the weighted-average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the View transaction list Journal entry worksheet 1 2 3 4 5 6 Record sales on account. Note: Enter debits before credits. Date January 24 General Journal Debit Credit Desk 1 < Prev 3 of 15 Next > 7 e US 23 Mar 6:44
26 EhaLbrowser=0&launch Url=https:253A%252F%252Fnewcorrected education on 1726 Saved Help Save & E first account field.) 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and purchase transactions are on account and that the weighted-average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the View transaction list Journal entry worksheet 1 2 3 4 5 6 Record sales on account. Note: Enter debits before credits. Date January 24 General Journal Debit Credit Desk 1 < Prev 3 of 15 Next > 7 e US 23 Mar 6:44
Transcribed Image Text:26 EhaLbrowser=0&launch Url=https:253A%252F%252Fnewcorrected education on 1726 Saved Help Save & E first account field.) 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and purchase transactions are on account and that the weighted-average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the View transaction list Journal entry worksheet 1 2 3 4 5 6 Record sales on account. Note: Enter debits before credits. Date January 24 General Journal Debit Credit Desk 1 < Prev 3 of 15 Next > 7 e US 23 Mar 6:44
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