Question - Learning Objectives - Accounting for inventory transactions under FIFO costing
Accounting records for Richmond Corporation yield the following data for the year ended December 31, 2010:
general ledger
Inventory, December 31, 2009 $ 8,000
Purchases of inventory (on account) 47,000
Sales of inventory-79% on account; 21 % for cash (cost $41,000) 79,000
Inventory at FIFO, December 31, 2010 14,000
Requirements
1. Journalize Richmond's inventory transactions for the year under the perpetual system.
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement.