Reference no: EM131790351
Question - The beginning inventory at Continental Office Supplies and data on purchases and sales for a three month period are as follows:
Date transaction number of units per 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.