FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Faithful Books has the following transactions in August related to merchandise inventory.

Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the​ month:

 

August

​3:

 

10 books costing

$18 each

 

August

​15:

4 books costing

$18 each and

9 books costing

$21each

 

August

​28:

2 books costing

$21each and

2 books costing

$28 each

Aug. 1 Beginning merchandise inventory, 16 books @ $18 each

Aug. 3 Sold 10 books @ $21 each

Aug. 12 Purchased 12 books @ $21 each

Aug. 15 Sold 13 books @ $21 each

Aug. 20 Purchased 3 books @ $28 each

Aug. 28 Sold 4 books @ $22 each

Start by entering the beginning inventory balances. Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​purchased, sold, and on hand at the end of the period.​

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