The beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month period ending August 31, 2014, 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 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 as of August 31, 2014.

Transcribed Image Text:

Number of Units Per Unit Date Transaction Total June 1 Inventory Purchase 500 $30.00 $15,000 10 1,500 34.00 51,000 28 Sale 750 50.00 37,500 30 Sale 250 13,000 $55.00 $ 5,500 52.00 July 5 Sale 100 10 Purchase 3,600 1,800 1,700 35.00 126,000 16 Sale 56.00 100,800 28 Sale 60.00 102,000 Aug. 5 Purchase Sale 107,400 120,000 3,000 35.80 14 2,000 60.00 25 Purchase 500 36.00 18,000 30 Sale 1,750 60.00 105,000 Number of Units Per Unit Date Transaction Total June 1 Inventory Purchase 500 $30.00 $15,000 10 1,500 34.00 51,000 28 Sale 750 50.00 37,500 30 Sale 250 13,000 $55.00 $ 5,500 52.00 July 5 Sale 100 10 Purchase 3,600 1,800 1,700 35.00 126,000 16 Sale 56.00 100,800 28 Sale 60.00 102,000 Aug. 5 Purchase Sale 107,400 120,000 3,000 35.80 14 2,000 60.00 25 Purchase 500 36.00 18,000 30 Sale 1,750 60.00 105,000

Answer rating: 100% (QA)

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