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Francesca Co FIFO perpetual Inventory

Price: $2.50


The beginning inventory of merchandise at Francesca Co. and data on purchases and
sales for a three-month period are as follows:

Date Transaction # of units Per Unit Total
July 3 Inventory 75 1,500 112,500
8 Purchase 150 1,800 270,000
11 Sale 90 3,000 270,000
30 Sale 45 3,000 135,000
Aug. 8 Purchase 125 2,000 250,000
10 Sale 110 3,000 330,000
19 Sale 80 3,000 240,000
28 Purchase 100 2,200 220,000
Sept. 5 Sale 60 3,500 210,000
16 Sale 50 3,500 175,000
21 Purchase 180 2,400 432,000
28 Sale 90 3,500 315,000

Instructions
1. 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.
5. Based upon the preceding data, would you expect the inventory using the last-in,
first-out method to be higher or lower?

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