FIFO Perpetual Inventory

The beginning inventory of merchandise at Rhodes Co$.$ and data on purchases and sales for a three$-$month period ending June $30$ are as follows:

Date Transaction Number

of Units Per Unit Total

Apr. $3$ Inventory $54$ $$525$ $$28,350$

$8$ Purchase $10863068,040$

$11$ Sale $721,750126,000$

$30$ Sale $451,75078,750$

May $8$ Purchase $9070063,000$

$10$ Sale $541,75094,500$

$19$ Sale $271,75047,250$

$28$ Purchase $9077069,300$

June $5$ Sale $541,84099,360$

$16$ Sale $721,840132,480$

$21$ Purchase $162840136,080$

$28$ Sale $811,840149,040$

Required:

$1.$ Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit $3,$ using the first$-$in$,$ first$-$out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Rhodes Co$.$

Schedule of Cost of Merchandise Sold

FIFO Method

For the three$-$months ended June $30$

Purchases Cost of Merchandise Sold Inventory

Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost

Apr. $3$ fill in the blank $1$ $fill in the blank $2$ $fill in the blank $3$

Apr. $8$ fill in the blank $4$ $fill in the blank $5$ $fill in the blank $6$ fill in the blank $7$ fill in the blank $8$ fill in the blank $9$

fill in the blank $10$ fill in the blank $11$ fill in the blank $12$

Apr. $11$ fill in the blank $13$ $fill in the blank $14$ $fill in the blank $15$ fill in the blank $16$ fill in the blank $17$ fill in the blank $18$

fill in the blank $19$ fill in the blank $20$ fill in the blank $21$

Apr. $30$ fill in the blank $22$ fill in the blank $23$ fill in the blank $24$ fill in the blank $25$ fill in the blank $26$ fill in the blank $27$

May $8$ fill in the blank $28$ fill in the blank $29$ fill in the blank $30$ fill in the blank $31$ fill in the blank $32$ fill in the blank $33$

fill in the blank $34$ fill in the blank $35$ fill in the blank $36$

May $10$ fill in the blank $37$ fill in the blank $38$ fill in the blank $39$ fill in the blank $40$ fill in the blank $41$ fill in the blank $42$

fill in the blank $43$ fill in the blank $44$ fill in the blank $45$

May $19$ fill in the blank $46$ fill in the blank $47$ fill in the blank $48$ fill in the blank $49$ fill in the blank $50$ fill in the blank $51$

May $28$ fill in the blank $52$ fill in the blank $53$ fill in the blank $54$ fill in the blank $55$ fill in the blank $56$ fill in the blank $57$

fill in the blank $58$ fill in the blank $59$ fill in the blank $60$

June $5$ fill in the blank $61$ fill in the blank $62$ fill in the blank $63$ fill in the blank $64$ fill in the blank $65$ fill in the blank $66$

June $16$ fill in the blank $67$ fill in the blank $68$ fill in the blank $69$ fill in the blank $70$ fill in the blank $71$ fill in the blank $72$

June $21$ fill in the blank $73$ fill in the blank $74$ fill in the blank $75$ fill in the blank $76$ fill in the blank $77$ fill in the blank $78$

fill in the blank $79$ fill in the blank $80$ fill in the blank $81$

June $28$ fill in the blank $82$ fill in the blank $83$ fill in the blank $84$ fill in the blank $85$ fill in the blank $86$ fill in the blank $87$

fill in the blank $88$ fill in the blank $89$ fill in the blank $90$

June $30$ Balances $fill in the blank $91$ $fill in the blank $92$

$2.$ 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. If an amount box does not require an entry, leave it blank.

Description Post. Ref. Debit Credit

Record sale

fill in the blank $94$ fill in the blank $95$

fill in the blank $97$ fill in the blank $98$

Record cost

fill in the blank $100$ fill in the blank $101$

fill in the blank $103$ fill in the blank $104$

$3.$ Determine the gross profit from sales for the period.

$fill in the blank $105$

$4.$ Determine the ending inventory cost as of June $30.$

$fill in the blank $106$

$5.$ Based upon the preceding data, would you expect the inventory using the last$-$in$,$ first$-$out method to be higher or lower?