Modern Lifestyle Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500. During the month, Modern purchased and sold merchandise on account as follows:

June 7	Purchase	25 sofas @ $750 each
14	Sale	30 sofas @ $1,150 each
18	Purchase	50 sofas @ $775 each
27	Sale	35 sofas @ $1,200 each

Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit.

Answer rating: 100% (QA)

Beginning inventory cost per sofa 31500 45 700 Ending i... View the full answer