WebTranscribed Image Text: Prepare journal entries to record the following transactions, assuming perpetual inventory updating and first-in, first-out (FIFO) cost allocation. Assume no beginning inventory. Number Cost of Units per Unit A. Jan. 2, purchased merchandise for resale 380 $22 B. Jan. 12, purchased merchandise for resale 240 25 C. Jan. 16, sold … WebJul 19, 2024 · The company then applies first-in, first-out (FIFO) method to compute the cost of ending inventory. The information about the inventory balance at the beginning and purchases made during the year 2016 are …
Exercise-2 (Perpetual and periodic inventory system - journal entries ...
WebTranscribed Image Text: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory … WebMar 13, 2024 · A transaction of sale is recorded via two journal entries in perpetual inventory system. The first one records the sale value of inventory and the second one records the cost of goods sold and reduces the inventory balance. The two journal entries are shown below: The recording of sales return also requires two journal entries. fsharetv english movies
Perpetual Inventory System Journal Entries - XPLAIND.com
WebLO 10.3 Which of the following describes features of a perpetual inventory system? Technology is normally used to record inventory changes. Merchandise bought is recorded as purchases. An adjusting journal entry is required at year end, to match physical counts to the asset account. Inventory is updated at the end of the period. WebJul 19, 2024 · Ending inventory: 800 units at $12 = $9,600. Required: Make journal entries to record above transactions assuming a periodic inventory system is used by Paradise Hardware Store. Solution: * (21,600 + 2,400) – 9,600. Periodic inventory system is usually used by companies that buy and sell a wide variety of inexpensive products. WebSep 15, 2024 · Perpetual FIFO is a cost flow tracking system under which the first unit of inventory acquired is presumed to be the first unit consumed or sold. In addition, this … gifts for fishing men