Determine the total sales and the total cost of merchandise sold for the period. Journalize the…

PR 7-1B FIFO perpetual inventory

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

Number

Per

Date

Transaction

of Units

Unit

Total

3-Jul

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?

PR 7-2B LIFO perpetual inventory

The beginning inventory for Francesca Co and data on purchases and sales for a three month period are shown in Problem 7-1B.

Instructions

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method.

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost.

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