Problem 8.1A On 15 January 2013, BassTrack sold 1,000 Ace-5 fishing reels to Angler'sWarehouse. Immediately prior to this sale, BassTrack's perpetual inventory records for Acc-5 reelsincluded the following cost layers:TVEVatuationPurchase DateQuantityUnit CostTotal Cost12 Dec. 2012. ...600$290$174,000288,000$462,0009 Jan. 2013.900320Tolal on hand1,500InstructionsNote: We present this problem in the normal sequence of the uccounting cyclo-that is, journalentries before ledger entries. However, you may find it helpful to work part b first.a. Prepare a sepurate journal entry to record the cost of goods sold relating to the 15 January saleof 1,000 Ace-5 reels, assuming that BassTrack uses:1. Specific cost identificution (500 of the units sold were purchased on 12 Decemher, andthe remaining S00 were purchased on 9 January).2. Weighted averuge cost.3. 1IRO.

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Asked Oct 31, 2019

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Problem 8.1A On 15 January 2013, BassTrack sold 1,000 Ace-5 fishing reels to Angler's
Warehouse. Immediately prior to this sale, BassTrack's perpetual inventory records for Acc-5 reels
included the following cost layers:
T
VE
Vatuation
Purchase Date
Quantity
Unit Cost
Total Cost
12 Dec. 2012. ...
600
$290
$174,000
288,000
$462,000
9 Jan. 2013.
900
320
Tolal on hand
1,500
Instructions
Note: We present this problem in the normal sequence of the uccounting cyclo-that is, journal
entries before ledger entries. However, you may find it helpful to work part b first.
a. Prepare a sepurate journal entry to record the cost of goods sold relating to the 15 January sale
of 1,000 Ace-5 reels, assuming that BassTrack uses:
1. Specific cost identificution (500 of the units sold were purchased on 12 Decemher, and
the remaining S00 were purchased on 9 January).
2. Weighted averuge cost.
3. 1IRO.
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Problem 8.1A On 15 January 2013, BassTrack sold 1,000 Ace-5 fishing reels to Angler's Warehouse. Immediately prior to this sale, BassTrack's perpetual inventory records for Acc-5 reels included the following cost layers: T VE Vatuation Purchase Date Quantity Unit Cost Total Cost 12 Dec. 2012. ... 600 $290 $174,000 288,000 $462,000 9 Jan. 2013. 900 320 Tolal on hand 1,500 Instructions Note: We present this problem in the normal sequence of the uccounting cyclo-that is, journal entries before ledger entries. However, you may find it helpful to work part b first. a. Prepare a sepurate journal entry to record the cost of goods sold relating to the 15 January sale of 1,000 Ace-5 reels, assuming that BassTrack uses: 1. Specific cost identificution (500 of the units sold were purchased on 12 Decemher, and the remaining S00 were purchased on 9 January). 2. Weighted averuge cost. 3. 1IRO.

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check_circleExpert Solution
Step 1

A perpetual inventory framework is a technique for following and recording stock and expenses of products sold consistently, so a present stock parity can be determined progressively.

Step 2

Working notes:

To calculate cost of goods sold:

COGS= No. of units × cost per unit

COGS= (500 × $290) + (500 × $320)

           = $145,000 + $160,000

           = $305,000

1. Journal entry using specific cost identification method:
Accounts title and explanation
Credit
Date
Debit
15th Jan 2013
Cost of goods sold
Inventory
(To record cost of 1,000 Ace 5 reels)
$305,000
$305,000
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1. Journal entry using specific cost identification method: Accounts title and explanation Credit Date Debit 15th Jan 2013 Cost of goods sold Inventory (To record cost of 1,000 Ace 5 reels) $305,000 $305,000

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Step 3

Working notes:

To calculate cost of goods sold:

Weighted average cost per unit= total cost ÷ no. of units

                                                  = $462,000 ÷ 1500

          ...

2. Journal entry using weighted average cost method:
Accounts title and explanation
Credit
Date
Debit
Cost of goods sold
Inventory
(To record cost of 1,000 Ace 5 reels)
15th Jan 2013
$308,000
$308,000
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2. Journal entry using weighted average cost method: Accounts title and explanation Credit Date Debit Cost of goods sold Inventory (To record cost of 1,000 Ace 5 reels) 15th Jan 2013 $308,000 $308,000

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