for a three-month period are as follows:
Number Per
Date Transaction of Units Unit Total
March 3 Inventory 60 $1,500 $ 90,000
8 Purchase 120 1,800 216,000
11 Sale 80 5,000 400,000
30 Sale 50 5,000 250,000
April 8 Purchase 100 2,000 200,000
10 Sale 60 5,000 300,000
19 Sale 30 5,000 150,000
28 Purchase 100 2,200 220,000
May 5 Sale 60 5,250 315,000
16 Sale 80 5,250 420,000
21 Purchase 180 2,400 432,000
28 Sale 90 5,250 472,500
Inventory turnover
and number of days'
sales in inventory
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, firstout method.
2. 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