1. Record the inventory, purchases, and cost of merchandise sold data in a perpe

Question

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. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

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 May 31, 2016.
$

Total sales $ Total cost of merchandise sold $ Gross profit from sales $ The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period are as follows Number of Units Date Transaction Per Unit Total $225 $10,800 25,920 48,000 30,000 24,000 36,000 18,000 26,400 37,920 50,560 51,840 56,880 48 96 64 March 3 Inventory 270 750 750 300 750 750 330 790 790 360 790 8 Purchase 11 Sale 30 Sale April 8 Purchase 80 48 10 Sale 19 Sale 28 Purchase 80 48 64 144 72 May 5 Sale 16 Sale 21 Purchase 28 Sale

Explanation / Answer

Answer 1 Inventory account using LIFO Method Date Rate Qty Amt Date Rate Qty Amt 'March -3 Opening balance 225 48 10800 'March -11 Cost of goods sold 270 64 17280 'March -8 Purchase 270 96 25920 'March -30 Cost of goods sold 270 32 8640 'March -30 Cost of goods sold 225 8 1800 'March -31 Closing balance 225 40 9000 144 36720 144 36720 Date Rate Qty Amt Date Rate Qty Amt 'April-1 Opening balance 225 40 9000 'April -10 Cost of goods sold 300 48 14400 'April -8 Purchase 300 80 24000 'April -19 Cost of goods sold 300 24 7200 'April -28 Purchase 330 80 26400 'April-30 Closing balance - April -1 225 40 9000 - April -8 300 8 2400 - April-28 330 80 26400 200 59400 200 59400 Date Rate Qty Amt Date Rate Qty Amt 'May-1 Opening balance 'May-5 Cost of goods sold 330 48 15840 - April -1 225 40 9000 'May-16 Cost of goods sold 330 32 10560 - April -8 300 8 2400 'May-16 Cost of goods sold 300 8 2400 - April-28 330 80 26400 'May-16 Cost of goods sold 225 24 5400 'May-28 Cost of goods sold 360 72 25920 'May-21 Purchase 360 144 51840 'May-31 Closing stock - April-1 225 16 3600 - May-21 360 72 25920 272 89640 272 89640 Answer 2 March April May Total In $ In $ In $ In $ Sales 78000 54000 145360 277360 Cost of mechandise sold 27720 21600 60120 109440 Gross Profit from sales 50280 32400 85240 167920 Answer 3 Ending Inventory cost as on 31st May $29,520

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.