FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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FIFO perpetual inventory
The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows:
|
Date |
Transaction |
Number of Units |
Per Unit |
Total |
|
1-Jan |
Inventory |
2,500 |
$60 |
150,000 |
|
10 |
Purchase |
7,500 |
68 |
510,000 |
|
28 |
Sale |
3,750 |
120 |
450,000 |
|
30 |
Sale |
1,250 |
120 |
150,000 |
|
5-Feb |
Sale |
500 |
120 |
60,000 |
|
10 |
Purchase |
18,000 |
70 |
1,260,000 |
|
16 |
Sale |
9,000 |
125 |
1,125,000 |
|
28 |
Sale |
8,500 |
125 |
1,062,500 |
|
5-Mar |
Purchase |
15,000 |
71.6 |
1,074,000 |
|
14 |
Sale |
10,000 |
125 |
1,250,000 |
|
25 |
Purchase |
2,500 |
72 |
180,000 |
|
30 |
Sale |
8,750 |
125 |
1,093,750 |
Instructions
- Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record, using the first-in, first-out method.
- 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. - Determine the gross profit from sales for the period.
- Determine the ending inventory cost as of March 31, 2016.
LIFO perpetual inventory
The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A.
Instructions
- Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record, using the last-in, first-out method.
- Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
- Determine the ending inventory cost as of March 31, 2016.
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