In: Accounting
ABC Company has provided the following information from their records:
Purchases Sales
Units Unit Cost Units Selling Price/Unit
Mar 1 Beginning inventory 100 $50
3 Purchase 60 $60
4 Sales 70 $100
10 Purchase 200 $70
16 Sales 80 $110
19 Sales 80 $110
25 Sales 50 $110
30 Purchase 40 $75
Using the inventory and sales data above, to complete the below inventory schedule under FIFO method and prepare the journal entries to record the sales on March 4. All sales are made on credit.
Inventory Schedule - FIFO | |||||||||
PURCHASES | COST OF GOODS SOLD | BALANCE | |||||||
Date | Units | Cost | Total | Units | Cost | Total | Units | Cost | Total |
Hi...
Inventory Schedule - FIFO | |||||||||
Purchase | Cost of Goods Sold | Balance | |||||||
Date | Units | Cost | Total | Units | Cost | Total | Units | Cost | Total |
Mar. 1 | 100 | 50 | 5,000 | 100 | 50 | 5,000 | |||
Mar. 3 | 60 | 60 | 3,600 | 60 | 60 | 3,600 | |||
Mar. 4 | 70 | 50 | 3,500 | 30 | 50 | 1,500 | |||
60 | 60 | 3,600 | |||||||
Mar. 10 | 200 | 70 | 14,000 | 30 | 50 | 1,500 | |||
60 | 60 | 3,600 | |||||||
200 | 70 | 14,000 | |||||||
Mar. 16 | 30 | 50 | 1,500 | 10 | 60 | 600 | |||
50 | 60 | 3,000 | 200 | 70 | 14,000 | ||||
Mar. 19 | 10 | 60 | 600 | 130 | 70 | 9,100 | |||
70 | 70 | 4,900 | |||||||
Mar. 25 | 50 | 70 | 3,500 | 80 | 70 | 5,600 | |||
Mar. 30 | 40 | 75 | 3,000 | 80 | 70 | 5,600 | |||
40 | 75 | 3,000 | |||||||
Mar. 31 | 400 | 25,600 | 280 | 17,000 | 120 | 8,600 |
Journal Entry for Sale
Date Particulars Debit Credit
Mar. 4 Account Receivable $7,000
Sales Revenue $ 7,000
Cost of Goods Sold $ 3,500
Inventory $ 3,500