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Posted: April 13th, 2022
PR 7-1A FIFO Perpetual Inventory The beginning inventory of Merchandise at Waldo Co.
PR 7-1A FIFO Perpetual InventoryThe beginning inventory of Merchandise at Waldo Co. and data on purchases and sales for a three-month period are as follows:Date Transaction Number of Units Per Unit TotalMarch 3 Inventory 60 $1500 $90,0008 Purchase 120 1800 216,00011 Sale 80 5000 400,00030 Sale 50 5000 250,000April 8 Purchase 100 2000 200,00010 Sale 60 5000 300,00019 Sale 30 5000 150,00028 Purchase 100 2200 220,000May 5 Sale 60 5250 315,00016 Sale 80 5250 420,00021 Purchase 180 2400 432,00028 Sale 90 5250 472,500Instructions1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.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.3. Determine the gross profit from sales for the period.4. Determine the ending inventory cost.
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