On May 11 ABC Company sold 100 units to the customer. At the date of this sale the ABC Company’s perpetual inventory records included the following cost layers for the inventory: Purchase date. Quantity. Unit Cost Total Cost May 01 60 $800. $48000 May 03 40 $820 $32800 May 07 20 $850 $17000 Required: Prepare subsidiary ledger and Journal entries for CGS under:
On May 11 ABC Company sold 100 units to the customer. At the date of this sale the ABC Company’s perpetual inventory records included the following cost layers for the inventory: Purchase date. Quantity. Unit Cost Total Cost May 01 60 $800. $48000 May 03 40 $820 $32800 May 07 20 $850 $17000 Required: Prepare subsidiary ledger and Journal entries for CGS under:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...
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On May 11 ABC Company sold 100 units to the customer. At the date of this sale the ABC Company’s perpetual inventory records included the following cost layers for the inventory:
Purchase date. Quantity. Unit Cost Total Cost
May 01 60 $800. $48000
May 03 40 $820 $32800
May 07 20 $850 $17000
Required: Prepare subsidiary ledger and
1. Specific Identification Method ( 60 of the units sold were purchased on May 01 and the remaining units were purchased on May 03)
2. Average cost Method
3. FIFO Method
4. LIFO Method
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