FIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 66 $600 $39,600 8 Purchase 132 720 95,040 11 Sale 88 2,000 176,000 30 Sale 55 2,000 110,000 May 8 Purchase 110 800 88,000 10 Sale 66 2,000 132,000 19 Sale 33 2,000 66,000 28 Purchase 110 880 96,800 June 5 Sale 66 2,100 138,600 16 Sale 88 2,100 184,800 21 Purchase 198 960 190,080 28 Sale 99 2,100 207,900
FIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 66 $600 $39,600 8 Purchase 132 720 95,040 11 Sale 88 2,000 176,000 30 Sale 55 2,000 110,000 May 8 Purchase 110 800 88,000 10 Sale 66 2,000 132,000 19 Sale 33 2,000 66,000 28 Purchase 110 880 96,800 June 5 Sale 66 2,100 138,600 16 Sale 88 2,100 184,800 21 Purchase 198 960 190,080 28 Sale 99 2,100 207,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
eBook
Show Me How
FIFO Perpetual Inventory
The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
| Date | Transaction | Number of Units |
Per Unit | Total | ||||
| Apr. 3 | Inventory | 66 | $600 | $39,600 | ||||
| 8 | Purchase | 132 | 720 | 95,040 | ||||
| 11 | Sale | 88 | 2,000 | 176,000 | ||||
| 30 | Sale | 55 | 2,000 | 110,000 | ||||
| May 8 | Purchase | 110 | 800 | 88,000 | ||||
| 10 | Sale | 66 | 2,000 | 132,000 | ||||
| 19 | Sale | 33 | 2,000 | 66,000 | ||||
| 28 | Purchase | 110 | 880 | 96,800 | ||||
| June 5 | Sale | 66 | 2,100 | 138,600 | ||||
| 16 | Sale | 88 | 2,100 | 184,800 | ||||
| 21 | Purchase | 198 | 960 | 190,080 | ||||
| 28 | Sale | 99 | 2,100 | 207,900 |
Transcribed Image Text:**Table Contents:**
- June 21:
- Quantity: 180
- Unit Cost: 712
- Total Cost: 128,160
- June 28 and June 30 Balances: Blank fields for entries.
**Instructions:**
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.
**Journal Entry Table:**
- **Description:**
- Record sale (drop-down selection)
- Record sale (drop-down selection)
- Record cost (drop-down selection)
- Record cost (drop-down selection)
- **Post. Ref.:** Blank fields for entries.
- **Debit:**
- Blank fields for entries.
- **Credit:**
- Blank fields for entries.
Transcribed Image Text:**Purchases and Inventory Table**
This table outlines the purchases, cost of merchandise sold, and inventory details for a specific period. The data is systematically arranged by date and includes columns for quantity, unit cost, and total cost for each section.
### Columns:
1. **Date**: The specific day of the transaction.
2. **Purchases**:
- **Quantity**: Number of items purchased.
- **Unit Cost**: Cost per item.
- **Total Cost**: Total cost for that purchase transaction (Quantity x Unit Cost).
3. **Cost of Merchandise Sold**:
- **Quantity**: Number of items sold.
- **Unit Cost**: Cost per item sold.
- **Total Cost**: Total cost of items sold (Quantity x Unit Cost).
4. **Inventory**:
- **Quantity**: Number of items remaining in inventory.
- **Unit Cost**: Current cost per item in inventory.
- **Total Cost**: Total inventory cost (Quantity x Unit Cost).
### Data Details:
- **April 3**: No purchase or sales activity.
- **April 8**:
- **Purchases**: 720 units purchased at $690 each, total cost $82,800.
- **Inventory Update**: 40 units at $670, totaling $26,800. Additional 120 units added at $690 each, totaling $82,800.
- **April 11, April 30**: No recorded activity.
- **May 8**:
- **Purchases**: 100 units purchased at $700 each, total cost $70,000.
- **May 10, May 19**: No recorded activity.
- **May 28**:
- **Purchases**: 120 units purchased at $707 each, total cost $84,840.
- **June 5**: No recorded activity.
- **June 16**: No recorded activity.
- **June 21**:
- **Purchases**: 180 units purchased at $712 each, total cost $128,160.
**Note**: The table uses a structured format for tracking inventory costs, sales, and remaining quantities, providing an organized method of financial assessment for merchandising operations.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education