Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales…


Question Description:

25

The beginning inventory of merchandise at Citrine Co. and data on purchases and sales for a three-month period are as follows: Number Per Date Date Transaction of Units Unit Total March 1 Inventory 132 $1,500 $198,000 8 Purchase 108 2,000 216,000 11 Sale 72 4,800 345,600 22 Sale 66 4,800 316,800 April 3 Purchase 96 2,300 220,800 10 Sale 60 5,000 300,000 21 Sale 30 5,000 150,000 30 Purchase 120 2,350 282,000 May 5 Sale 120 5,250 630,000 13 Sale 72 5,250 378,000 21 Purchase 180 2,400 432,000 28 Sale 90 5,400 486,000 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. 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.

Answer

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