Reference no: EM133016171
Question - Goofy Toy Company Limited had the following purchases and sales of Minnie Dolls during the month of May 2021:
Number of Units Unit cost
02-May Purchase 4,000 $9.00
10-May Purchase 5,000 $10.50
13-May Sale 8,000
19-May Purchase 8,400 $11.00
24-May Sale 10,000
30-May Purchase 3,600 $10.75
Goofy Toy Company began the month with 6,000 units with a cost of $10.00 each. The selling price for units sold in May was $35.00 per unit and Goofy uses a perpetual inventory system. All inventory purchases & sales are on account.
Required -
1. Calculate the cost of goods sold for the month of May using the weighted average cost flow assumption.
2. Calculate the cost of ending inventory at May 31 using the FIFO cost flow assumption
3. Calculate the gross profit for the month of May for Goofy assuming they use the weighted average cost flow assumption.
4. Prepare the journal entries to record the May 10 purchase of inventory & the May 24 sale assuming they are using weighted average cost flow assumption.
You must show your work! Round to two decimal points if necessary.