(Learning Objectives 1, 2: Show how to account for inventory transactions; applythe FIFO cost method) Accounting records for Allegheny Corporation yield the followingdata for the year ended June 30, 2018:Inventory, June 30, 2017.......................................................................... $ 13,000Purchases of inventory (on account)......................................................... 53,000Sales of inventory—82% on account; 18% for cash (cost $46,000).........Inventory at FIFO, June 30, 2018 ............................................................73,00020,000Requirements1. Journalize Allegheny’s inventory transactions for the year under the perpetual system.2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriatefinancial statement
(Learning Objectives 1, 2: Show how to account for inventory transactions; apply
the FIFO cost method) Accounting records for Allegheny Corporation yield the following
data for the year ended June 30, 2018:
Inventory, June 30, 2017.......................................................................... $ 13,000
Purchases of inventory (on account)......................................................... 53,000
Sales of inventory—82% on account; 18% for cash (cost $46,000).........
Inventory at FIFO, June 30, 2018 ............................................................
73,000
20,000
Requirements
1. Journalize Allegheny’s inventory transactions for the year under the perpetual system.
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate
financial statement
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