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, firstout

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.

March 3 Inventory 60 $1,500 $ 90,000

8 Purchase 120 1,800 216,000

11 Sale 80 5,000 400,000

30 Sale 50 5,000 250,000

April 8 Purchase 100 2,000 200,000

10 Sale 60 5,000 300,000

19 Sale 30 5,000 150,000

28 Purchase 100 2,200 220,000

May 5 Sale 60 5,250 315,000

16 Sale 80 5,250 420,000

21 Purchase 180 2,400 432,000

28 Sale 90 5,250 472,500