Paschal Exports
the Following Data Are Available for One of the Products

question 38

Essay

Paschal Exports
The following data are available for one of the products sold by Paschal Exports,which uses a perpetual inventory system.
$\begin{array}{lllr} \text { July } &1& \text { Beginning inventory, } 1,000 \text { wits at } \$ 2 \text { each } & \$ 2,000 \\&5 & \text { Purchased } 2,000 \text { units at } \$ 2.75 \text { each } & 5,500 \\&10 & \text { Sold } 2,500 \text { units for } \$ 16 \text { each } & \\&15 & \text { Purchased 2,000 units at } \$ 4 \text { each }&8,000 \\&25 & \text { Sold 1, } 500 \text { units for } \$ 12 \text { each } \\&31 & \text { Ending inventory, } 1,000 \text { units }\end{array}$
-Refer to the information provided for Paschal Exports.If the moving average cost method of inventory costing is used,determine the following amounts:
A)Cost of goods sold for the units sold on July 10th?
B)Ending inventory on July 31st?

• A)Cost of goods sold for the units sold on July 10th?
• B)Ending inventory on July 31st?

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Definitions:

Fair Value Adjustment-Trading

The process of adjusting the valuation of trading securities to reflect their current market value.

Adjusting Journal Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Stock Investments

Stock investments refer to the purchasing of shares in companies as a means of owning a portion of the company and potentially earning dividends or capital gains.

Journal Entries

The recordings of financial transactions in an accounting system which form the basis of building financial statements.