Question

Given the following information, determine the journal entries:    

a. using the weighted average perpetual inventory method.

b. using the LIFO perpetual inventory method.

c. using the FIFO perpetual inventory method.

March beginning inventory is 5 units at $6 per unit.             

March 3: 15 units were purchased at $7 per unit.
March 11: 10 units were purchased at $9 per unit.

March 15: 20 units were sold at $15 per unit.

March 18: 35 units were purchased at $10 per unit.
March 31: 30 units were sold at $20 per unit.

CALCULATE JOURNAL ENTRIES FROM ABOVE INFORMATION:

JOURNAL ENTRIES:

Answer 1

	a.	Weighted Average Method
			Date	Purchase			Sales			Balance
				Quantity	Rate	Amount	Quantity	Rate	Amount	Quantity	Rate	Amount
			March3							5	$6.00	$30.00
			March 3	15	$7.00	$105.00				20	$6.75	$135.00
			March11	10	$9.00	$90.00				30	$7.50	$225.00
			March15				20	$7.50	$150.00	10	$7.50	$75.00
			March 18	35	$10	$350.00				45	$9.44	$425.00
			March 31				30	$9.44	$283.33	15	$9.44	$141.67
		Weighted Average perpetual inventory Method
		JOURNAL ENTRIES
	Date	Account Titles	Debit	Credit
	March3	Inventory	$105.00
		Accounts Payable		$105.00
	March11	Inventory	$90.00
		Accounts Payable		$90.00
	March 15	Accounts Receivable	$300
		Sales		$300
		Cost of goods sold	$150.00
		Inventory		$150.00
	March18	Inventory	$350.00
		Accounts Payable		$350.00
	March 31	Accounts Receivable	$600
		Sales		$600
		Cost of goods sold	$283.33
		Inventory		$283.33
	b	LIFO perpetual inventory method
			Date	Purchase			Sales			Balance
				Quantity	Rate	Amount	Quantity	Rate	Amount	Quantity	Rate	Amount
			March3							5	$6.00	$30.00
			March 3	15	$7.00	$105.00				5	$6.00	$30.00
										15	$       7.00	$ 105.00
			March11	10	$9.00	$90.00				5	$       6.00	$    30.00
										15	$       7.00	$ 105.00
										10	$       9.00	$    90.00
			March15				10	$       9.00	$    90.00	5	$       6.00	$    30.00
							10	$       7.00	$70.00	5	$       7.00	$35.00
			March 18	35	$10	$350.00				5	$       6.00	$    30.00
										5	$       7.00	$    35.00
										35	$    10.00	$ 350.00
			March 31				30	$    10.00	$300.00	5	$       6.00	$    30.00
										5	$       7.00	$    35.00
										5	$10.00	$50.00
		LIFO perpetual inventory Method
		JOURNAL ENTRIES
	Date	Account Titles	Debit	Credit
	March3	Inventory	$105.00
		Accounts Payable		$105.00
	March11	Inventory	$90.00
		Accounts Payable		$90.00
	March 15	Accounts Receivable	$300
		Sales		$300
		Cost of goods sold	$         160.00
		Inventory		$160.00
	March18	Inventory	$350.00
		Accounts Payable		$350.00
	March 31	Accounts Receivable	$600
		Sales		$600
		Cost of goods sold	$300.00
		Inventory		$300.00
c.	FIFO Perpetual Inventory method
			Date	Purchase			Sales			Balance
				Quantity	Rate	Amount	Quantity	Rate	Amount	Quantity	Rate	Amount
			March3							5	$6.00	$30.00
			March 3	15	$7.00	$105.00				5	$6.00	$30.00
										15	$       7.00	$ 105.00
			March11	10	$9.00	$90.00				5	$       6.00	$    30.00
										15	$       7.00	$ 105.00
										10	$       9.00	$    90.00
			March15				5	$       6.00	$    30.00	10	$       9.00	$    90.00
							15	$       7.00	$ 105.00
			March 18	35	$10	$350.00				10	$       9.00	$    90.00
										35	$    10.00	$ 350.00
			March 31				10	$       9.00	$90.00	15	$    10.00	$ 150.00
							20	$    10.00	$200.00
		FIFO perpetual inventory Method
		JOURNAL ENTRIES
	Date	Account Titles	Debit	Credit
	March3	Inventory	$105.00
		Accounts Payable		$105.00
	March11	Inventory	$90.00
		Accounts Payable		$90.00
	March 15	Accounts Receivable	$300
		Sales		$300
		Cost of goods sold	$         135.00
		Inventory		$135.00
	March18	Inventory	$350.00
		Accounts Payable		$350.00
	March 31	Accounts Receivable	$600
		Sales		$600
		Cost of goods sold	$290.00
		Inventory		$290.00