Acme Distributors purchases inventory in crates of merchandise.
Assume the company began January with an inventory of 30 units that cost $300 each. During the month, the company purchased and sold merchandise on account as shown.
Jan. 10 Purchased 30 units at $320.
15 Sold 40 units at $600.
22 Purchased 70 units at $350.
29 Sold 75 units at $700.
Assume Acme Distributors uses the FIFO cost method for valuing inventories. The company uses a perpetual inventory system.
Cash payments on account totalled $15,000. Company operating expenses for the month were $20,000. The company paid one-half in cash, with the rest accrued as Accounts Payable.
Required
1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.
2. Make journal entries to record the company's transactions.