Inventory Management Case

PR $7-1$A

FIFO perpetual

inventory

objs. $2,3$

$51,413,500$

The beginning inventory of merchandise at Waldo $Co.$ and data on purchases and sales

for a three$-$month period are as follows:

Instructions

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.

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.

Determine the gross profit from sales for the period.

Determine the ending inventory cost.

Repeat the above $4$ steps using Last in First out $($LIFO$)$