exercise planet began October with merchandise inventory of 65 crates of vitamins that cost a total of $3835 during the month exercise planet purchased and sold merchandise on account as follows

October 5 purchase 145 crates at $80 each

October 13 sale 160 crates at $104 each

October 18 purchase 170 crates at $90 each

October 26 sale 175 crates at $116 each

prepare a perpetual inventory record using the FIFO inventory costing method and determine the companies cost of good sold any merchandise inventory and gross profit

Begin by computing the cost of good sold and cost of ending merchandise inventory using the FIFO inventory costing method enter the transactions in chronological order calculating new inventory on hand bounces after each transaction was all the transactions have been entered into the perpetual record calculate the quality and total cost of merchandise inventory purchase sold and on hand at the end of the. Enter the oldest inventory layers first