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, firstout
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.
March 3 Inventory 60 $1,500 $ 90,000 8 Purchase 120 1,800 216,000
- 11 Sale 80 5,000 400,000
- 30 Sale 50 5,000 250,000
- April 8 Purchase 100 2,000 200,000
- 10 Sale 60 5,000 300,000
- 19 Sale 30 5,000 150,000
- 28 Purchase 100 2,200 220,000
- May 5 Sale 60 5,250 315,000
- 16 Sale 80 5,250 420,000
- 21 Purchase 180 2,400 432,000
- 28 Sale 90 5,250 472,500