Hercula Cycles started August with 25 bicycles that cost 65

Hercula Cycles started August with 25 bicycles that cost $ 65 each. On August 16 Hercula bought 50 bicycles at $80 each. On August 31Hercula sold 38 bicycles for $100 each.

Prepare Hercula ?Cycle\'s perpetual inventory record assuming the company uses the? weighted-average inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological? order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual? record, calculate the quantity and total cost of inventory? purchased, sold, and on hand at the end of the period.

Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account.

Journal Entry :

Purchase account Dr (50*80) $ 4000

To Accounts Payable Account Credit $4000

		Inventory Account
Date	Opening Balance		Purchases		Sold		Closing Balance
	Quantity	Price per unit	Total	Quantity	Price	Total	Quantity	Price	Total	Quantity	Price
01-Aug	25	65	1625	0	0		0	0		25	1625
16-Aug	25	65	1625	50	80	4000				75	5625
31-Aug	75	75	5625	0	0	0	38	75	2850	37	2775

Hercula Cycles started August with 25 bicycles that cost $ 65 each. On August 16 Hercula bought 50 bicycles at $80 each. On August 31Hercula sold 38 bicycles fo

Hercula Cycles started August with 25 bicycles that cost 65

Solution

Get Help Now

Submit a Take Down Notice