Question

Purchase and sale transactions of one type of goods during the month of October 200A at PT DWI WARNA are as shown below....


Purchase and sale transactions of one type of goods during the month of October 200A at PT DWI WARNA are as shown below. All purchases and sales are made on credit. Purchase: October 4, 200A: 900 units @ Rp 40 October 11, 200A: 1,500 units @Rp 50 October 25, 200A: 1,500 units @ Rp 60 Sale: October 9, 200A: 1,000 units @ R p50 October 16, 200A: 1,500 [email protected] Rp 50 October 23, 200A: 1,000 units @ Rp 50 October 30, 200A: 800 units @ Rp 50 Merchandise inventory on October 1, 200A consists of 500 units @ Rp 30. Requested: (1) Prepare the journal entries needed to record the purchase and sale of the merchandise mentioned above, if the recording is done by: a permanent balance system and the costing method used is: (a) FIFO; (b) LIFO; (c) average. (2) Record the above transactions in card stock. include excel calculation formula

Answer

FIFO, LIFO, and average method are the types of inventory valuation process that helps in determining the value cost of goods being sold and the value of remaining stock at the end of the period.

Stock card under FIFO:

Accounting homework question answer, step 2, image 1

Resultant values:

Accounting homework question answer, step 2, image 2

Journal entries under FIFO:

Accounting homework question answer, step 2, image 3

Resultant values:

Accounting homework question answer, step 2, image 4

 

Stock card-LIFO method:

Accounting homework question answer, step 3, image 1

 

Resultant values:

Accounting homework question answer, step 3, image 2

Journal entries are made as follow:

Accounting homework question answer, step 3, image 3

Resultant values:

Accounting homework question answer, step 3, image 4

Stock card-average method:

Accounting homework question answer, step 4, image 1

Resultant values:

Accounting homework question answer, step 4, image 2

Journal entries are made as follow:

Accounting homework question answer, step 4, image 3

Resultant values:

Accounting homework question answer, step 4, image 4

Recent Questions