FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What is the ending inventory cost

Obj. 2, 3 The beginning inventory at Midnight Supplies and data on
purchases and sales for a three-month period ending March 31 are as
SHOW ME HOW
follows:
PR 6-2A below
EXCEL TEMPLATE
Date
Transaction Number Per Unit
Total
of Units
Jan. 1
Inventory
7,500
$ 75.00 $ 562,500
10
Purchase
22,500
85.00 1,912,500
28
Sale
11,250
150.00 1,687,500
30
Sale
3,750
150.00
562,500
Feb. 5
Sale
1,500
150.00
225,000
10
Purchase
54,000
87.50 4,725,000
16
Sale
27,000
160.00 4,320,000
28
Sale
25,500
160.00 4,080,000
Mar. 5
Purchase
45,000
89.50 4,027,500
14
Sale
30,000
160.00 4,800,000
25
Purchase
7,500
90.00
675,000
30
Sale
26,250
160.00 4,200,000
Instructions
Record the inventory, purchases, and cost of goods sold data in a perpetual inventory
record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.
Determine the total sales and the total cost of goods sold for the period. Journalize the
entries in the sales and cost of goods sold accounts. Assume that all sales were on account.
Determine the gross profit from sales for the period.
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Transcribed Image Text:Obj. 2, 3 The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as SHOW ME HOW follows: PR 6-2A below EXCEL TEMPLATE Date Transaction Number Per Unit Total of Units Jan. 1 Inventory 7,500 $ 75.00 $ 562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Instructions Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. Determine the gross profit from sales for the period.
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