The beginning inventory of merchandise at Martin Co. and data on purchases and sales for a two-month period are as follows:

Instructions
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, on page 310, using the first-in, first-out method.
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost.
5. Record the entry necessary when the inventory count is $13,000 at the end of August.

Transcribed Image Text:

Number of Units Date Transaction Unit Total Jul. 5 Inventory $1,100 88,0D0 120,000 60,000 91.000 280,000 56,000 140,000 8 Sale 16 Sale 21 Purchase 3,DOD 3,DOD 1,300 3,500 1,4OD 3, 500 70 Aug. 3 Sale 10 Purchase 23 Sale 40