Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of itemA are given in the following table for the first six months of the current year. The company uses a perpetual inventory system:DateJanuary 1 (beginning inventory)January 24February 8March 16June 11Ending inventoryGross profit$ 4,668.51$PurchasesNumber of Units5706706701,093.00Unit Cost Number of Units$3.90$4.00$4.00370Required:1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations andround the final answer to 2 decimal places.)Sales370Sales Price2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediatecalculations and round the final answer to 2 decimal places.)$5.40$5.40 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales andpurchase transactions are on account and that the weighted-average method is used. (Do not round intermediate calculations andround the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in thefirst account field.)View transaction listJournal entry worksheet< 12DateMarch 163Note: Enter debits before credits.Record cost of sales on goods sold on account.Cost of salesInventoryRecord entry4LO5General JournalClear entry6DebitCreditView general journal

Name: Neverstop Corporation sells item A as part of its product line. Infor
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Description: Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of itemA are given in the following table for the first six months of the current year. The company uses a perpetual inve

Journal entry is defined as the process in which the recording of transactions takes place in the…

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Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of iter 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 Ending inventory $ 4,668.51 Purchases Number of Units 570 670 Sales Unit Cost Number of Units Sales Price $3.90 370 $4.00 370 $4.00 670 Required: 1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations a round the final answer to 2 decimal places.) $5.40 $5.40

Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of iter 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 Ending inventory $ 4,668.51 Purchases Number of Units 570 670 Sales Unit Cost Number of Units Sales Price $3.90 370 $4.00 370 $4.00 670 Required: 1. Compute the cost of ending inventory by using the weighted-average costing method. (Do not round intermediate calculations a round the final answer to 2 decimal places.) $5.40 $5.40

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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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 Ending inventory Purchases Sales Number of Units Unit Cost Number of Units 570 $3.90 $4.00 $4.00 670 Gross profit 670 370 370 Sales Price Required: 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.) $5.40 $5.40 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.)
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