Beginning Inventory: 1,000 units at $4/unit

Purchases: 600 units at $5/unit

Ending Inventory: 900 units

Perpetual Inventory Method

Sal, owner of Smooth Sailing Surf Shop, has given you the following data from his season’s intake. He has asked you to advise him if the season was profitable. Given the below chart using a perpetual inventory method, calculate Smooth Sailing’s inventory, COGS and Gross profit using all three Cost Flow Methods and prepare the corresponding Income Statements. ***Note*** the beginning units were purchased the previous season at $12.00/unit

Date	Purchases	Sales	Inventory
March 1st			5,000
April 18th	7,500 @ $16.00 each
May 13th		8,250 @ $21.00 each
July 9th	9,500 @ $17.50 each
September 27th		6,750 @ $24.00 each
Total Purchases/Sales

Answer rating: 100% (QA)

Calculation of the Total Purchases and Total Sales On March 1st the beginning inventory is 5000 units On April 18th the shop purchased 7500 units at 1... View the full answer