2) Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the current year, Sea Travel purchased 15 Wings at the following costs. Purchase DateUnits PurchasedUnit CostTotal costMay 24$7000$28,000May 202$710014,200May 258$725058000June 510$730073000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Computea) the cost of goods sold on May 28 andb) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:

Note: No inventory valuation method is specified therefore the question is solved with First in…

Answered: Sea Travel sells motor boats. One of…

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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2) Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the current year, Sea Travel purchased 15 Wings at the following costs.

Purchase Date	Units Purchased	Unit Cost	Total cost
May 2	4	$7000	$28,000
May 20	2	$7100	14,200
May 25	8	$7250	58000
June 5	10	$7300	73000
	24		$173,200

On May 28, Sea Travel sold 11 Wings to the jack Sport racing team.

Compute

a) the cost of goods sold on May 28 and
b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions:

c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:

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