Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PR 7-1A FIFO perpetual inventory OBJ. 2,3 The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending

image text in transcribed
PR 7-1A FIFO perpetual inventory OBJ. 2,3 The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31, are as follows: $8,983, 125 SHOW ME HOW Date Jan. 10 28 30 Feb. 5 10 16 28 Mar. 5 14 25 30 Transaction Inventory Purchase Sale Sale Sale Purchase Sale Sale Purchase Sale Purchase Sale Number of Units 7.500 22.500 11,250 3,750 1,500 54,000 27,000 25,500 45,000 30,000 7,500 26.250 Per Unit $ 75.00 85.00 150.00 150.00 150.00 87.50 160.00 160.00 89.50 160.00 90.00 160,00 Total $ 562,500 1,912,500 1,687,500 562,500 225,000 4,725,000 4,320,000 4,080,000 4,027,500 4,800,000 675,000 4,200,000 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. Journal ize 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An International Introduction

Authors: David Alexander, Prof Christopher Nobes, Chris W. Nobes

4th Edition

027372164X, 978-0273721642

More Books

Students also viewed these Accounting questions