Exercise 5 ‘ 5A
Effect of inventory cost flow on ending inventory balance and gross margin
Dugan Sales had the following transactions for jackets in 2013, its first year of operations:
|
Jan. 20 |
Purchased 80 units @ $15 |
= |
$1,200 |
|
Apr. 21 |
Purchased 420 units @ $16 |
= |
6,720 |
|
July 25 |
Purchased 250 units @ $20 |
= |
5,000 |
|
Sept. 19 |
Purchased 150 units @ $22 |
= |
3,300 |
During the year, Dugan Sales sold 830 jackets for $40 each.
Required
b. Record the above transactions in general journal form and post to T accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T accounts for each method. Assume all transactions are cash transactions.