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Q. 5 (Total Marks: 10) Supreme Ltd. began with an inventory of 60 signs that cost...

Q. 5 (Total Marks: 10) Supreme Ltd. began with an inventory of 60 signs that cost a total of $1,800 Supreme purchased & sold signs on credit as follows: Purchase 1 65 signs @ $32 Sale 1 105 signs @ $65 Purchase 2 92 signs @ $38 Sale 2 75 signs @ $68 Supreme uses the average cost method of inventory valuation. Cash payments on account totalled $2,080. Operating expenses were $3,600. Supreme paid two-thirds in cash & accrued the rest as accounts payable. Required: a) Prepare a perpetual inventory record at average cost. (Marks: 7) b) Make journal entries to record the firm’s transactions.

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ekkarill92 answered 2 years ago
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