exhibit 4

question 7-6

answer format

for Item 127B. The journal entries and the are shown in Exhibit 4 as follows: Co (1,000 units at a unit cost 1. The beginning balance on January 1 is $20,000 2. on January 4,700 units were sold at a price rice of $30 each for sales of $21,0020 merchandise sold is $14,000 at a unit cost of s20). After the sale, there remains $6,000 of inventory (300 unit cost of s20). $6,000 of inventory (300 unitnits at a selling price of $30 per unit). The cost of merc EXHIBIT 4 Entries and Perpetual Inventory Account (FIFO) Las wh Cost of Merchandise Sold 21,000 21,000 Invento Purchases Unit Total s Cost of Merchandise Sold 14,000 Unit Total ate Quantity Cost Cost Quantity Cost Cost Quantity Cost 700 20.00 14,000 300 20.00 14,000 Accounts Payable 4 11,200 10 500 22.40 11,200 300 20.00 6,000 10,80022 300 20.00 6,000 60 22.40 1,344 440 240 22.40 5.376 200 22.40 4,480 22 Cost of Merchandise Sold 7,344 22.409,856 7,344 28 30 600 23.30 13,980 Sales 7,200 28 Cost of Merchandise Sold 5,376 31 Balances 26,720 5,376 18,460 Cost of merchandise sold inventory