Chapter 6, Problem 6.6SE

Use the following information to answer Short Exercises S6-3 through S6-6.

Montana Cycles started July with 25 bicycles that cost $36 each. On July 16, Montana bought 35 bicycles at $60 each. On July 31, Montana sold 33 bicycles for $105 each.

Preparing a perpetual inventory record and journal entries-Weighted-average

Requirements

1. Prepare Montana Cycle’s perpetual inventory record assuming the company uses the weighted-average inventory costing method.

2. Journalize the July 16 purchase of merchandise inventory on account and the July 31 sale of merchandise inventory on account.