Gillam Ltd uses a perpetual inventory system. The unit cost of inventory is assigned using the First-In, First-Out method. During June 2010 the company had the following transactions for an item of material: June 1 Balance 240 units @ $6.00 $ 1,440 5 Purchased on credit 160 units @ $5.50 880 10 Issued 40 units to Job 60 15 Issued 220 units to Job 61 20 Purchased on credit 260 units @ $6.00 1,560 22 Issued 100 units to Job 62 25 Issued 200 units to Job 63 29 Returned 10 units to the supplier purchased on the 22 June REQUIRED: ( a ) Prepare an inventory ledger card (stock card) to record the above. ( b ) Prepare a general journal entry to record the total issues for June. ( c ) Prepare a general journal entry to record the return to the supplier of 10 units purchased on 22 June.
Gillam Ltd uses a perpetual inventory system. The unit cost of inventory is assigned using the First-In, First-Out method. During June 2010 the company had the following transactions for an item of material:
|
June 1 |
Balance |
240 units @ $6.00 |
$ 1,440 |
|
5 |
Purchased on credit |
160 units @ $5.50 |
880 |
|
10 |
Issued 40 units to Job 60 |
|
|
|
15 |
Issued 220 units to Job 61 |
|
|
|
20 |
Purchased on credit |
260 units @ $6.00 |
1,560 |
|
22 |
Issued 100 units to Job 62 |
|
|
|
25 |
Issued 200 units to Job 63 |
|
|
|
29 |
Returned 10 units to the supplier purchased on the 22 June |
REQUIRED:
( a ) Prepare an inventory ledger card (stock card) to record the above.
( b ) Prepare a general
( c ) Prepare a general journal entry to record the return to the supplier of 10 units purchased on 22 June.
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