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Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had...

Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had 30 units of inventory, of which 10 units were purchased in March for $60 per unit and 20 units were purchased in April for $66 per unit. STC uses its perpetual inventory system to account for the following transactions.

May 2 STC shipped 25 units of inventory to customers for $150 per unit, on credit terms n/60, FOB shipping point.
May 4 STC purchased and received 20 units of inventory for $70 per unit, on credit terms n/45.
May 8 STC shipped 20 units of inventory to customers for $150 per unit, on credit terms n/60, FOB shipping point.

Assume Stolte Trimble Corporation (STC) uses weighted average cost in its perpetual inventory system. Prepare the journal entry for each transaction.

JE -

1-Record the sale of units to customers on credit terms n/60.

2-Record the cost of units sold to customers on credit terms n/60.

3-Record the purchase of units on credit terms n/45.

4-Record the sale of units to customers on credit terms n/60.

5-Record the cost of units sold to customers on credit terms n/60.

5

Solutions

Expert Solution

==> Determination of cost goods sold :

==> Cost of goods sold for May 2. sale = $1,600

==> Cost of goods sold for May 8. sale = $1,376

Journal Entries :

ekkarill92 answered 1 year ago
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