Question - The ski shop began February with an inventory of 50 ski vests that cost a total of $1500, with each costing $30. The store purchased and sold merchandise on account as follows.
Purchase1- 60vests @$35
Sale1- 100vests @$60
Purchase2- 80vests @$40
Sale2- 70vests @$70
Assume that ski shop uses the FIFO cost method. Cash payments on account totaled $5,100. Operation expense were $2,400; the store paid two-thirds in cash and recorded the rest as accounts payable.
Requirements -
1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.
2. Make journal entries to record the store's transactions.