Determine the gross profit from sales for the period and


The beginning inventory at Continental Office Supplies and data on purchases and sales for a three-month period are as follows:

 

 

 

Number

Per

 

Date

 

Transaction

of Units

Unit

Total

Jan.

1

Inventory

50

$20.00

$1,000

 

7

Purchase

200

22.00

4,400

 

20

Sale

90

40.00

3,600

 

30

Sale

110

40.00

4,400

Feb.

8

Sale

20

44.00

880

 

10

Purchase

130

23.00

2,990

 

27

Sale

90

42.00

3,780

 

28

Sale

50

45.00

2,250

Mar.

5

Purchase

180

24.00

4,320

 

13

Sale

90

50.00

4,500

 

23

Purchase

100

26.00

2,600

 

30

Sale

80

50.00

4,000

Instructions

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.

2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account.

3. Determine the gross profit from sales for the period.

4. Determine the ending inventory cost.

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Financial Accounting: Determine the gross profit from sales for the period and
Reference No:- TGS0798903

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