The beginning inventory of merchandise at Chris Smith Co and
The beginning inventory of merchandise at Chris Smith Co. and data on purchases and sales for a two-month period are as follows:
Instructions
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, on page 310, using the FIFO method.
2. 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.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost.
5. Record the entry necessary when the inventory count is $175,200 at the end of April.
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