FIFO Perpetual Inventory Required: Determine the total sales and the total cost

Question

FIFO Perpetual Inventory

Required:

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.

3. Determine the gross profit from sales for the period.
$

4. Determine the ending inventory cost as of August 31, 2014.
$

5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?
SelectHigherLowerItem 106

Record sale SelectAccounts ReceivableAccounts PayableCashFees EarnedMerchandise InventorySalesItem 96 SelectAccounts PayableAccounts ReceivableCashCost of Merchandise SoldMerchandise InventorySalesItem 98 Record cost SelectAccounts PayableCashCost of Merchandise SoldMerchandise InventorySalesItem 100 SelectAccounts PayableAccounts ReceivableCashCost of Merchandise SoldMerchandise InventoryItem 102

Explanation / Answer

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.

3. Determine the gross profit from sales for the period.

$ 193350

4. Determine the ending inventory cost as of August 31, 2014.
$ 26950

5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?

Record sale Accounts Recievable 483800
Sales 483800 Record cost Cost of Merchandise Sold 290450
Merchandise Inventory 290450

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