Question

LaBBC 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 average cost method and prepare the journal entries to record the sales on March 4. All sales are made on credit.

Inventory Schedule - Average Cost
	PURCHASES			COST OF GOODS SOLD			BALANCE
Date	Units	Cost	Total	Units	Cost	Total	Units	Cost	Total

Answer 1

Inventory Schedule - Average Cost
	PURCHASES			COST OF GOODS SOLD			BALANCE
Date	Units	Cost	Total	Units	Cost	Total	Units	Cost	Total
Beg							100	50	5000
03-Mar	60	60					100	50	5000
							60	60	3600
						Avg	160	53.75	8600
04-Mar				70	53.75	3762.5	90	53.75	4837.5
10-Mar	200	70	14000				90	53.75	4837.5
							200	70	14000
						Avg	290	64.9569	18837.5
16-Mar				80	64.9569	5196.552	210	64.9569	13640.95
19-Mar				80	64.9569	5196.552	130	64.9569	8444.397
25-Mar				50	64.9569	3247.845	80	64.9569	5196.552
30-Mar	40	75	3000				80	64.9569	5196.552
							40	75	3000
						Avg	120	68.3046	8196.552

04-Mar	Cash	$ 7,000.00
	Sales Revenue		$    7,000.00
04-Mar	Cost of Goods Sold	$ 3,762.50
	Merchandise Inventory		$    3,762.50
16-Mar	Cash	$ 8,800.00
	Sales Revenue		$    8,800.00
16-Mar	Cost of Goods Sold	$ 5,196.55
	Merchandise Inventory		$    5,196.55
19-Mar	Cash	$ 8,800.00
	Sales Revenue		$    8,800.00
19-Mar	Cost of Goods Sold	$ 5,196.55
	Merchandise Inventory		$    5,196.55
25-Mar	Cash	$ 5,500.00
	Sales Revenue		$    5,500.00
25-Mar	Cost of Goods Sold	$ 3,247.84
	Merchandise Inventory		$    3,247.84