The beginning inventory at Keats Office Supplies and data on purchases and sales for a three month period are shown in Problem 7 1A Instructions 1 Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last in, first out method 2 Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period 3 Determine the ending inventory cost Data From Problem 7 1 The beginning inventory at Keats Office Supplies and data on purchases and sales for a three month period are as follows Instructions 1 Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first in, first out method 2 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 3 Determine the gross profit from sales for the period 4 Determine the ending inventory cost 5 Based upon the preceding data, would you expect the inventory using the last in, first out method to be higher or lower

Question: The beginning inventory at Keats Office Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A. Instructions 1. Record

The beginning inventory at Keats Office Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A.

Instructions
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method.
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
3. Determine the ending inventory cost.

Data From Problem 7-1:

The beginning inventory at Keats Office Supplies and data on purchases and sales for a three-month period are as follows:

The beginning inventory at Keats Office Supplies and data on purchases and

Instructions
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.
2. 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.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost.
5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?

Step by Step Solution

★★★★★

3.30 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Perpetual inventory record using lastin firstout method Date Description Purchases Sales Balance Unit Cost Total Cost Mar 1 Inventory 300 0 300 20 6000 Mar 10 Purchase 500 0 800 21 16800 Mar 28 Sale 0 ... View full answer