Pronghorn Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and h only cash sales. Pronghorn uses the average cost formula in a perpetual inventory system. Increased competition has recently reduce the price of the product. Date Apr. 1 6 8 15 20 27 Explanation Beginning inventory Purchases Sales Purchases Sales Purchases Units 50 110 (130) 120 (120) 20 Unit Cost $84 90 70 58 Unit Price $121 96
Pronghorn Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and h only cash sales. Pronghorn uses the average cost formula in a perpetual inventory system. Increased competition has recently reduce the price of the product. Date Apr. 1 6 8 15 20 27 Explanation Beginning inventory Purchases Sales Purchases Sales Purchases Units 50 110 (130) 120 (120) 20 Unit Cost $84 90 70 58 Unit Price $121 96
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Pronghorn Inc. has provided you with the following information. This company purchases its inventory from a supplier for cash and has
only cash sales. Pronghorn uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced
the price of the product.
Date
Apr. 1
6
8
15
20
27
Explanation
Beginning inventory
Purchases
Sales
Purchases
Sales
Purchases
Units
50
110
(130)
120
(120)
20
Unit Cost
$84
90
70
58
Unit Price
$121
96
Transcribed Image Text:Date
pril 1
pril 6
pril 8
pril 8
pril 15
pril 20 ✓
pril 20 ✓
Account Titles and Explanation
No Entry
No Entry
Inventory
Cash
Cash
Sales
(To record sales)
Cost of Goods Sold
Inventory
(To record cost of goods sold)
Inventory
Cash
Cash
Sales
(To record sales)
Cost of Goods Sold
Inventory
Debit
9,900
15,730
15,609
8,400
11,520
Credit
9,900
15,730
15,730
8,400
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Follow-up Question
For April 8 ($11,416) and April 20 ($8,827), the values are incorrect. What are the correct values and how would you go about solving them?
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