Executive Suites, Inc., uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 60 types of products the company keeps in stock. The following transactions show the purchases and sales of a particular desk chair (product code DC-7) during September. Sept. 1 Balance on hand. 50 units, cost $60 each........................$3,000 Sept. 4 Purchase, 20 units, cost $65 each........................................$1,300 Sept. 8 Sale, 35 units. sales price $100 each...................................$3,500 Sept. 9 Purchase, 40 units, cost $65 each........................................$2,600 Sept. 20 Sale, 60 units, sales price $100 each.................................$6,000 Sept. 25 Purchase, 40 units, cost $70 each.......................................$2,800 Sept. 30 Sale, 5 units, soles price $110 each.....................................$550 a. Record the beginning inventory, the purchases, the cost of goods sold, and the running balance on an inventory record card like the one illustrated on page 472. Use the last-in, first out (LIFO) method. b. Prepare general journal entries to record these purchases and sales in September. Assume that all transactions were on account.
Executive Suites, Inc., uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 60 types of products the company keeps in stock. The following transactions show the purchases and sales of a particular desk chair (product code DC-7) during September.
Sept. 1 Balance on hand. 50 units, cost $60 each........................$3,000
Sept. 4 Purchase, 20 units, cost $65 each........................................$1,300
Sept. 8 Sale, 35 units. sales price $100 each...................................$3,500
Sept. 9 Purchase, 40 units, cost $65 each........................................$2,600
Sept. 20 Sale, 60 units, sales price $100 each.................................$6,000
Sept. 25 Purchase, 40 units, cost $70 each.......................................$2,800
Sept. 30 Sale, 5 units, soles price $110 each.....................................$550
a. Record the beginning inventory, the purchases, the cost of goods sold, and the running balance on an inventory record card like the one illustrated on page 472. Use the last-in, first out (LIFO) method.
b. Prepare general
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