Hobart Sign Company began with an inventory of 50 signs that cost a total of \(\$ 1,500\). Hobart purchased and sold merchandise on account as follows:

Hobart uses the FIFO cost method. Cash payments on account totaled \(\$ 5,000\). Operating expenses were \(\$ 2,700\); Hobart paid two-thirds in cash and accrued the rest as Accounts Payable.

Requirements 

1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.

2. Make journal entries to record the company's transactions. 

Transcribed Image Text:

Purchase ............... 60 signs @ $35 Sale 1...... 100 signs @ $60 Purchase 2........ 90 signs @ $40 Sale 2....... 70 signs @ $70