Khanh's Department Store, Ltd. uses a perpetual inventory system with moving-average cost; terms for all transactions n/30, FOB destination. Data for product E2-D2 include the following purchases: On May 7, 50units @£12 per unit; and on May 28, 30units @£14 per unit. On May 10, Khanh's sold 30 units, and on May 30, 35 units at the selling price of £25 per unit. Freigh cost of 1% selling price. On May 31, actual inventory on hand less than records by 2 units. Instructions: a. Prepare the perpetual inventory schedule for the above transactions using moving- average cost. b. Prepare journal entries for transactions, adjustments, and closings of the period.

Khanh's Department Store, Ltd. uses a perpetual inventory system with moving-average cost; terms for all transactions n/30, FOB destination. Data for product E2-D2 include the following purchases: On May 7, 50units @£12 per unit; and on May 28, 30units @£14 per unit. On May 10, Khanh's sold 30 units, and on May 30, 35 units at the selling price of £25 per unit. Freigh cost of 1% selling price. On May 31, actual inventory on hand less than records by 2 units. Instructions: a. Prepare the perpetual inventory schedule for the above transactions using moving- average cost. b. Prepare journal entries for transactions, adjustments, and closings of the period.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6EB: Bleistine Company had the following transactions for the month. Calculate the gross margin for the...

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