FIFO perpetual inventoryThe beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows:DateTransactionNumber of UnitsPer UnitTotal1-JanInventory2,500$60150,00010Purchase7,50068510,00028Sale3,750120450,00030Sale1,250120150,0005-FebSale50012060,00010Purchase18,000701,260,00016Sale9,0001251,125,00028Sale8,5001251,062,5005-MarPurchase15,00071.61,074,00014Sale10,0001251,250,00025Purchase2,50072180,00030Sale8,7501251,093,750InstructionsRecord 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 inventoryThe 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.

Name: FIFO perpetual inventoryThe beginning inventory at Funky Party Supplie
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Description: FIFO perpetual inventoryThe beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows:DateTransactionNumber of UnitsPer UnitTotal1-JanInventory2,500$60150,00010Purchase7

Inventory is valued using three methods namely FIFO, LIFO and weighted average methods. FIFO refers…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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