8. PERPETUAL WEIGHTED AVERAGE (refer to Question \#o) P6.4A (LO2,3) AP Information for Churchill Company is presented in P6.3A. Assume the same inventory data and that the company uses a perpetual inventory system. Ignore the inventory shortage in P6.3A part (d). Instructions a. Calculate the cost of goods sold and the ending inventory using weighted average. Round the weighted average cost per unit to two decimal places. b. Prepare the journal entry to record the November 15 sale. c. If the company changes from weighted average to FIFO and prices continue to fall, would you expect the cost of goods sold and ending inventory amounts to be higher or lower? Date Purcheses Cost of Goods sold Inventory Balance b. Date Account Titles \& Explanations Dr Cr c. 6. ESTIMATE INVENTORY GROSS PROFIT METHOD "E6.20 (LO 8) AP Video The inventory of Marshall's Merchandise Company was destroyed by fire on June 1. From an examination of the accounting records, the following data for the first five months of the year were obtained: Sales \$90,000; Sales Returns and Allowances \$1,500; Sales Discounts \$700; Delivery Expense \$2,500; Purchases \$51,200; Freight in \$2,200; Purchase Returns and Allowances $2,400; and Purchase Discounts $1,300. Instructions Determine the inventory lost by fire, assuming a beginning inventory of $25,000 and a gross profit margin of 40%