The beginning inventory at Continental Office Supplies and data on purchases and sales for a…


Question Description:

25

The beginning inventory at Continental Office Supplies and data on purchases and sales for a three-month period are as follows: Number Per Date Transaction of Units Unit Total Jan. 1 Inventory 50 $20.00 $1,000 7 Purchase 200 22.00 4,400 20 Sale 90 40.00 3,600 30 Sale 110 40.00 4,400 Feb. 8 Sale 20 44.00 880 10 Purchase 130 23.00 2,990 27 Sale 90 42.00 3,780 28 Sale 50 45.00 2,250 Mar. 5 Purchase 180 24.00 4,320 13 Sale 90 50.00 4,500 23 Purchase 100 26.00 2,600 30 Sale 80 50.00 4,000 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

25