I’m stuck on a Accounting question and need an explanation.
Using the Excel file provided below as a starting point, or by creating your own Excel file, complete the following problem, and submit your assignment as an attachment here. Be sure to save your work before you submit, and present your work in a reasonable format with major answers highlighted. Because you have plenty of time to do this assignment, and given that the textbook is available for your use, this assignment should really be close to perfect.
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Here is the problem:
The inventory records of Thinkle Company show the following:
| May 1 | Beginning inventory balance for May consists of 10 units costing $60 per unit., appropriately carried over from April 30. |
| May 3 | Sold 5 units at $100 per unit. |
| May 10 | Purchased 14 units at $67 per unit. |
| May 12 | Sold 7 units at $120 per unit. |
| May 20 | Sold 6 units at $118 per unit. |
| May 25 | Purchased 15 units at 74 per unit. |
| May 31 | Sold 8 units at $117 per unit. |
Assume all purchases and sales are made on credit, and that the company uses a perpetual inventory system.
Required: Using the FIFO perpetual inventory procedure, prepare the appropriate journal entries for the month of May.
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Here is a very rough document that you might use to get you started on this assignment. Please feel free to modify it to the extent necessary to complete this assignment. In doing so, please change the name of the file to include your name before submitting it.
