Chapter 6, Problem 6.2APR

(1)

To determine

Perpetual Inventory System:

Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases, and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time.

Last-in-Last-Out:

In Last-in-First-Out method, the costs of last purchased items are considered as the cost of goods sold, for the items which are sold first. The value of the closing stock consists of the initial purchased items.

To record: the inventory, purchases and cost of merchandise sold in perpetual inventory system.

(2)

To determine

To calculate: the sales and cost of merchandise sold accounts and gross profit.

(3)

To determine

To calculate: Ending inventory cost for the period ending March 31, 2016.