FIFO Perpetual Inventory

The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Date		Transaction	Number of Units	Per Unit	Total
Apr. 3		Inventory	48		$300		$14,400
8		Purchase	96		360		34,560
11		Sale	64		1,000		64,000
30		Sale	40		1,000		40,000
May 8		Purchase	80		400		32,000
10		Sale	48		1,000		48,000
19		Sale	24		1,000		24,000
28		Purchase	80		440		35,200
June 5		Sale	48		1,050		50,400
16		Sale	64		1,050		67,200
21		Purchase	144		480		69,120
28		Sale	72		1,050		75,600

Required:

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, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Rhodes Co. Schedule of Cost of Merchandise Sold FIFO Method For the three-months ended June 30
	Purchases	Cost of Merchandise Sold	Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr. 3							fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Apr. 8	fill in the blank 4	$fill in the blank 5	$fill in the blank 6				fill in the blank 7	fill in the blank 8	fill in the blank 9
fill in the blank 10	fill in the blank 11	fill in the blank 12
Apr. 11				fill in the blank 13	$fill in the blank 14	$fill in the blank 15	fill in the blank 16	fill in the blank 17	fill in the blank 18
fill in the blank 19	fill in the blank 20	fill in the blank 21
Apr. 30				fill in the blank 22	fill in the blank 23	fill in the blank 24	fill in the blank 25	fill in the blank 26	fill in the blank 27
May 8	fill in the blank 28	fill in the blank 29	fill in the blank 30				fill in the blank 31	fill in the blank 32	fill in the blank 33
fill in the blank 34	fill in the blank 35	fill in the blank 36
May 10				fill in the blank 37	fill in the blank 38	fill in the blank 39	fill in the blank 40	fill in the blank 41	fill in the blank 42
fill in the blank 43	fill in the blank 44	fill in the blank 45
May 19				fill in the blank 46	fill in the blank 47	fill in the blank 48	fill in the blank 49	fill in the blank 50	fill in the blank 51
May 28	fill in the blank 52	fill in the blank 53	fill in the blank 54				fill in the blank 55	fill in the blank 56	fill in the blank 57
fill in the blank 58	fill in the blank 59	fill in the blank 60
June 5				fill in the blank 61	fill in the blank 62	fill in the blank 63	fill in the blank 64	fill in the blank 65	fill in the blank 66
June 16				fill in the blank 67	fill in the blank 68	fill in the blank 69	fill in the blank 70	fill in the blank 71	fill in the blank 72
June 21	fill in the blank 73	fill in the blank 74	fill in the blank 75				fill in the blank 76	fill in the blank 77	fill in the blank 78
fill in the blank 79	fill in the blank 80	fill in the blank 81
June 28				fill in the blank 82	fill in the blank 83	fill in the blank 84	fill in the blank 85	fill in the blank 86	fill in the blank 87
fill in the blank 88	fill in the blank 89	fill in the blank 90
June 30	Balances					$fill in the blank 91			$fill in the blank 92

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. If an amount box does not require an entry, leave it blank.

	Description	Post. Ref.	Debit	Credit
Record sale	Accounts ReceivableCashFees EarnedMerchandise InventorySales		fill in the blank 94	fill in the blank 95
	Accounts ReceivableCashFees EarnedMerchandise InventorySales		fill in the blank 97	fill in the blank 98
Record cost	Accounts ReceivableCashCost of Merchandise SoldSalesMerchandise Inventory		fill in the blank 100	fill in the blank 101
	Accounts PayableAccounts ReceivableCashCost of Merchandise SoldMerchandise Inventory		fill in the blank 103	fill in the blank 104

3. Determine the gross profit from sales for the period. $fill in the blank 105

4. Determine the ending inventory cost as of June 30. $fill in the blank 106

5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?