Instructions
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.
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 on June 30, 2014.
Answer:
2. Total sales……………………………………………………………………………
Total cost of merchandise sold……………………………………………………
$525,250*
312,080
Gross profit…………………………………………………………………………… $213,170
*$525,250 = $80,000 + $60,000 + $100,000 + $40,000 + $90,000 + $56,250 + $99,000
3. $31,560 = [(20 units × $1,200) + (6 units × $1,260)]
= $24,000 + $7,560
1. Date Purchases Cost of Merchandise Sold Inventory
Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost Quantity
Unit
Cost
Total
Cost
Apr. 3 25 1,200 30,000
8 75 1,240 93,000 25
75
1,200
1,240
30,000
93,000
11 40 1,240 49,600 25
35
1,200
1,240
30,000
43,400
30 30 1,240 37,200 25
5
1,200
1,240
30,000
6,200
May 8 60 1,260 75,600 25
5
60
1,200
1,240
1,260
30,000
6,200
75,600
10 50 1,260 63,000 25
5
10
1,200
1,240
1,260
30,000
6,200
12,600
19 10
5
5
1,260
1,240
1,200
12,600
6,200
6,000 20 1,200 24,000
28 80 1,260 100,800 20
80
1,200
1,260
24,000
100,800
June 5 40 1,260 50,400 20
40
1,200
1,260
24,000
50,400
16 25 1,260 31,500 20
15
1,200
1,260
24,000
18,900
21 35 1,264 44,240 20
15
35
1,200
1,260
1,264
24,000
18,900
44,240
28 35
9
1,264
1,260
44,240
11,340
20
6
1,200
1,260
24,000
7,560
30 Balances 312,080 31,560