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Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory...

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Question

Accounting

Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the specific identification method. Assume the following costing information for the books sold during the month:

August

3:

2 books costing

$12 each

August

15:

5 books costing

$12 each and

7 books costing

$20 each

August

28:

2 books costing

$20 each and

1 books costing

$23 each

Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period.

Aug. 1

Beginning merchandise inventory, 8 books @ $12 each

Aug. 3

Sold 2 books @ $16 each

Aug. 12

Purchased 10 books @ $20 each

Aug. 15

Sold 12 books @ $16 each

Aug. 20

Purchased 2 books @ $23 each

Aug. 28

Sold 3 books @ $20 each

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