Unless otherwise stated, assume that all purchases were on account and received on the dates stated. Required: (A)Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method of inventory valuation to determine the company’s cost of goods sold for the quarter and the value of ending inventory.
Rennie’s Electronic Gadgets sells a variety of electronic devices including a variety of WIFI SMART
camera bulbs. The business began the second quarter (April to June) of 2020 with 15 (V380PRO)
camera bulbs at a total cost of $108,750. The following transactions relating to the “V380PRO” camera
bulbs were completed during the quarter.
April 7 90 bulbs were purchased at a cost of $6,850 each. In addition, the business paid freight
charges of $800 cash on each bulb to have the inventory shipped from the point of
purchase to their business location.
April 30 The sales for April were 75 bulbs which yielded total sales revenue of $803,250. (15 of
these bulbs were sold on account to longstanding customers of the business)
May 6 A new batch of 80 bulbs was purchased at a total cost of $654,800
May 9 Upon inspection of the bulbs purchased on May 6, five (5) of the units were found to be
defective and were returned to the supplier.
May 31 During the month 62 of the camera bulbs were sold at a price of $11,450 each.
June 5 A customer, to whom 7 of the bulbs were sold during the first business day of May,
returned 3 units of the merchandise, as they were of another make & model.
June 14 Owing to an increased demand, a further 110 bulbs were purchased at a cost of $9,000
each; the supplier gave a 3% quantity discount on the purchase.
June 30 116 bulbs were sold during June at a unit selling price of $12,250.
June 30 An actual count of inventory was carried out at the close of business which revealed that
there were 36 units of the V380PRO brand of merchandise in the storeroom.
Unless otherwise stated, assume that all purchases were on account and received on the dates stated.
Required:
(A)Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method
of
ending inventory.
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