Merchandise Inventory 37 COMPREHENSIVE PROBLEM Comprehensive Problem for Chapters 5 and 6 The Davis Lamp Company (DIC), owned by Jenny Davis, is a whi. that purchases lamps from the manufactuter and resells them to retail stores. The company has three inventory items: desk lamps, tabk lamps, and floor lamps. DIAc uses a perpetual inventory system, FIFO method. DIC owns land with a bilding, which is separated into two parts: office space a associated with the office are categorized as Administrative Expenses All espenses associated with the warchouse, which is used for the shipping and receiving functions nd warchouse space. All expenses f the company, are categorized as Selling Expenses In addition to the land and build ing, DLC also owns office furniture and equipment and warehouse fixtures. The com- pany uses one accumulated depreciation account for all the depreciable assets. The trial balance for DILAC as of September 50, 2018 follows DAVIS LAMP COMPANY Trial Balarce September 30, 2018 Debit Credit 457,000 Cash Accounts Receivable 126,000 275 350 Merchandise Inventory Office Supplies Warehouse Supplies Land Building Office Furniture and Equipment Warehouse Fixtures Accumulated Depreciation Accounts Payable Davis, Capital Davis, Withdrawals Sales Revenue Cost of Goods Sold Salaries Expense-Selling Utilities Expense-Selling Supplies Expense-Selling 780,000 125,000 260,000 5 194,000 398,925 2,654,150 1,061,450 270,000 32,000 90,000 Salaries Expense-Administrative Utilities Expense Administrative Supplies Expense-Administrative 25,000 Total 3,247,075 $3,247,075