Chapter 6, Problem 6.15AE

LO 1,2

(Learning Objectives 1, 2: Show how to account for inventory transactions; apply the FIFO cost method) Accounting records for Jubilee Corporation yield the following data for the year ended June 30, 2018 (assume sales returns are non-existent):

Inventory, June 30, 2017 .........................................................	$ 7,000
Purchases of inventory (on account) .......................................	61,000
Sales of inventory—77% on account; 23% for cash (cost $49.000) ...................................................................................	100,000
Inventory at FIFO, June 30, 2018 ............................................	19,000

Requirements

  1.    Journalize Jubilee’s inventory transactions for the year under the perpetual system.

  2.    Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement.