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
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.