Chapter 6, Problem 6.3APR

(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.

Weighted-average cost method:

Under weighted average cost method, the company calculates a new average cost after every purchase is made. It is determined by dividing the cost of goods available for sale by the units on hand.

To record: inventory, purchase and cost of merchandise sold data in perpetual inventory record.

(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.