On May 11 ABC Company sold 100 units to the customer. At the date of this sale the ABC Company’s perpetual inventory records included the following cost layers for the inventory: Purchase dateQuantityunit soldTotal costMay 160$800$48000May 240$820$32800May 720$850$17000Required: Prepare subsidiary ledger and Journal entries for CGS under: 1. Specific Identification Method ( 60 of the units sold were purchased on May 01 and the remaining units were purchased on May 03) 2. Average cost Method 3. FIFO Method 4. LIFO Method

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Description: On May 11 ABC Company sold 100 units to the customer. At the date of this sale the ABC Company’s perpetual inventory records included the following cost layers for the inventory: Purchase dateQuantityunit soldTotal costMay 160$800$48000May 240$820$32

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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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On May 11 ABC Company sold 100 units to the customer. At the date of this sale the ABC Company’s perpetual inventory records included the following cost layers for the inventory:

Purchase date	Quantity	unit sold	Total cost
May 1	60	$800	$48000
May 2	40	$820	$32800
May 7	20	$850	$17000

Required: Prepare subsidiary ledger and Journal entries for CGS under:

1. Specific Identification Method ( 60 of the units sold were purchased on May 01 and the remaining units were purchased on May 03)
2. Average cost Method
3. FIFO Method
4. LIFO Method

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