question archive Hashim Merchant operates as a business selling nuts and bolts of different sizes

Hashim Merchant operates as a business selling nuts and bolts of different sizes

Subject:AccountingPrice: Bought3

Hashim Merchant operates as a business selling nuts and bolts of different sizes. The company maintains the perpetual inventory system to record its inventory. The following data relates to the company's records for the month of July: Description - HEX Bolt M12 Units Price per unit Date July 1 Beginning balance 155 $11.25 15 Purchase 445 $12.60 10 Sale 400 $30.50 20 Purchase 395 $14.10 25 Sale 200 $30.50 Additional information: Sale on July 10 was made to Antalya Retailers with a term 5/15, n/30, FOB destination. Antalya paid 25% of the amount owed on July 21. The remaining balance was paid a week after that. Since Antalya is based in Turkey, there were a delivery charge of $1,800 plus insurance of $340 incurred. Instruction: a. If Hashim Merchant uses the weighted average method to track its inventory, determine the cost of its ending inventory (round average cost per unit te 2 decimals, and final answer to the nearest dollar). (13 marks) b. Compute the total gross profits arising from the sales activities. (2 marks) Prepare the journal entries to record all payments made by Antalya Retailers.

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