The beginning inventory at Funky Party Supplies and data on purchas...

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The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventorv 2.600 $54.00 $140.400 10 Purchase 7.000 62.00 434000 28 Sale 3.850 108.00 415.800 30 Sale 1.300 108.00 140.400 Feb. 5 Sale 500 108.00 54.000 10 Purchase 17.500 64.00 1.120.000 16 Sale 8.700 113.00 983.100 28 Sale 8.600 113.00 971.800 Mar. 5 Purchase 14.000 65.60 918.400 14 Sale 10.100 113.00 1.141.300 25 Purchase 3 300 66.00 217.800 30 Sale 7.750 113.00 875.750 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4 , using the first-in, first-out method. 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 and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31, 2016. 5. Based upon the precedina data. would vou expect the inventorv usina the last-in. first-out method to be hiaher or lower? 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4 using the first-in, first-out method. Date Purchases Cost of Merchandise Sold Inventory 2016 Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 $ $ $ $ $ $ 10 $ $ 10 $ $ 28 28 $ $ $ $ $ $ $ $ 30 $ $ $ $ Feb. 5 $ $ $ $ 10 10 $ $ $ $ 16 $ $ $ $ 16 $ $ $ $ 28 $ $ $ $ Mar. 5 $ $ 5 $ $ 14 $ $ $ $ 14 $ $ $ $ 25 $ $ 25 $ $ $ $ 30 $ $ 30 31 Balances CHART OF ACCOUNTS Funky Party Supplies General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable EXPENSES 131 Notes Receivable 510 Cost of Merchandise Sold 132 Interest Receivable 515 Credit Card Expense 141 Merchandise Inventory 516 Cash Short and Over 145 Office Supplies 520 Salaries Expense 146 Store Supplies 531 Advertising Expense 151 Prepaid Insurance 532 Delivery Expense 181 Land 533 Insurance Expense 191 Office Equipment 534 Office Supplies Expense 192 Accumulated Depreciation-Office Equipment 535 Rent Expense 193 Store Equipment 536 Repairs Expense 194 Accumulated Depreciation-Store Equipment 537 Selling Expenses LIABILITIES 538 Store Supplies Expense 210 Accounts Payable 561 Depreciation Expense-Office Equipment 221 Notes Payable 562 Depreciation Expense-Store Equipment 222 Interest Payable 590 Miscellaneous Expense 231 Salaries Payable 710 Interest Expense 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summarv 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 and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 Determine the gross profit from sales for the period. $ 4. Determine the ending inventory cost as of March 31, 2016. $ 5. Based upon the preceding data, would you expect the inventory using the last-in. first-out method to be higher or lower? Higher Lower

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