In: Accounting
Chipolo sells a coin-sized tracking tag that attaches to keys, wallets, and other personal items. Chipolo began January with an inventory of 200 tags purchased from its supplier in November last year at a cost of $12 per tag, plus 100 tags purchased in December last year at a cost of $15 per tag. Chipolo sells the tags at a price of $30 per tag, on account with terms n/30, FOB destination. Chipolo uses a perpetual inventory system to account for the following transactions.
Jan. | 8 | Chipolo gave 250 tags to a courier company (FedEx) to deliver to customers. | ||
Jan. | 9 | FedEx confirmed that all 250 tags were delivered today to customers. | ||
Jan. | 11 | Chipolo ordered 350 tags from its supplier. The supplier was out of stock but promised to send them to Chipolo as soon as possible. Chipolo agreed to a cost of $21 per tag, n/30. | ||
Jan. | 17 | Chipolo received cash payment from customers for 125 of the tags delivered 8 days earlier. | ||
Jan. | 21 | The 350 tags ordered on January 11 were shipped to and received by Chipolo today. | ||
Jan. | 23 | Chipolo gave 375 tags to FedEx, which were delivered “same day” to customers. | ||
Jan. | 31 | Chipolo counted its inventory and determined 20 tags were on hand. Chipolo made a “book-to-physical adjustment” to account for the missing 5 tags. |
Assume Chipolo uses weighted average cost in its perpetual inventory system. Prepare the journal entry for each transaction
1 - Record the tags delivered to customers.
2 - Record the sale of tags to customers.
3 - Record the cost of tags sold to customers.
4 - Record the order for tags made by Chipolo from its supplier
5 - Record the cash collected from customers.
6 - Record the purchase of tags after deducting the allowance given by supplier for delay between order and shipment.
7-Record the sale of tags to customers.
8-Record the cost of tags sold to customers.
9-Record the loss of inventory at its cost.