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. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.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. If an amount box does not require an entry, leave it blank. DateTransactionof UnitsPer UnitTotalApr. 3Inventory78$300$23,400Purchase15636056,16011Sale1041,000104,00030Sale651,00065,000May 8Purchase13040052,00010Sale781,00078,00019Sale391,00039,00028Purchase13044057,200June 5Sale781,05081,90016Sale1041,050109,20021Purchase234480112,32028Sale1171,050122,850Required: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. Under FIFO, if units are in inventory aRhodes Co.Schedule of Cost of Merchandise SoldFIFO MethodFor the three-months ended June 30PurchasesCost of Merchandise SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostАpг. 3Apr. 8OApr. 11Apr. 30May 8OMay 10May 19May 28OJune SJune 16June 21OJune 28June 30Balances DescriptionPost. Ref.DebitCreditRecord saleRecord cost3. Determine the gross profit from sales for the period.4. Determine the ending Inventory cost as of June 30.5. Based upon the preceding data, would you expect the Inventory using the last-In, first-out method to be higher or lower?

Name: 1. Record the inventory, purchases, and cost of merchandise sold data
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Description: 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. Under FIFO, if units are in inventory at two different costs, en

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

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. If an amount box does not require an entry, leave it blank.

Date
Transaction
of Units
Per Unit
Total
Apr. 3
Inventory
78
$300
$23,400
Purchase
156
360
56,160
11
Sale
104
1,000
104,000
30
Sale
65
1,000
65,000
May 8
Purchase
130
400
52,000
10
Sale
78
1,000
78,000
19
Sale
39
1,000
39,000
28
Purchase
130
440
57,200
June 5
Sale
78
1,050
81,900
16
Sale
104
1,050
109,200
21
Purchase
234
480
112,320
28
Sale
117
1,050
122,850
Required:
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. Under FIFO, if units are in inventory a
Rhodes Co.
Schedule of Cost of Merchandise Sold
FIFO Method
For the three-months ended June 30
Purchases
Cost of Merchandise Sold
Inventory
Date
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Аpг. 3
Apr. 8
O
Apr. 11
Apr. 30
May 8
O
May 10
May 19
May 28
O
June S
June 16
June 21
O
June 28
June 30
Balances

Description
Post. Ref.
Debit
Credit
Record sale
Record cost
3. Determine the gross profit from sales for the period.
4. Determine the ending Inventory cost as of June 30.
5. Based upon the preceding data, would you expect the Inventory using the last-In, first-out method to be higher or lower?

Expert Solution

Step 1

Inventory is the stock that the company held for resale purposes or the goods that are not sold yet and expected to be sold in near future. FIFO is one of the methods of recording inventory in the books of account after evaluation where the first purchased goods are sold first by the company.

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