The beginning inventory and data on purchases and sales for a three month period.
|
|
|
Number |
Per |
|
|
|
Date |
Transaction |
of Units |
Unit |
Total |
|
|
March |
1 |
Inventory |
132 |
$1,500 |
$198,000 |
|
|
8 |
Purchase |
108 |
2,000 |
216,000 |
|
|
11 |
Sale |
72 |
4,800 |
345,600 |
|
|
22 |
Sale |
66 |
4,800 |
316,800 |
|
April |
3 |
Purchase |
96 |
2,300 |
220,800 |
|
|
10 |
Sale |
60 |
5,000 |
300,000 |
|
|
21 |
Sale |
30 |
5,000 |
150,000 |
|
|
30 |
Purchase |
120 |
2,350 |
282,000 |
|
May |
5 |
Sale |
120 |
5,250 |
630,000 |
|
|
13 |
Sale |
72 |
5,250 |
378,000 |
|
|
21 |
Purchase |
180 |
2,400 |
432,000 |
|
|
28 |
Sale |
90 |
5,400 |
486,000 |
Instructions
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last in, first out method.
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
3. Determine the ending inventory cost.