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Hobart Distributors purchases inventory in crates of merchandise. Assume the company began March with an inventory of 34 units that cost $325 each. During the month, the company engaged in the following business transactions:

Assume Hobart Distributors uses the FIFO cost method for valuing inventories. The company uses a perpetual inventory system.

Required

1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.

2. Make journal entries to record the company's transactions.

Requirement 1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise. (Enter the oldest inventory layer first.)

Requirement 2. Make journal entries to record the company's transactions.

We will start by preparing the journal entry for the first purchase on March 10th: Purchased 34 units at $345. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.)

i Transactions Mar. 10 15 22 29 31 Purchased 34 units on account at $345. Sold 40 units on account at $650. Purchased 90 units on account at $375. Sold 77 units on account at $750. Reported monthly operating expenses of $20,000. The company paid one-third with cash, and the rest was recorded on account. Paid $23,000 of the Accounts Payable balance. 31 Print Done Requirement 1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise. (Enter the oldest inventory layer first.) UNITS Purchases QTY Unit Cost Tot. Cost Cost of Goods Sold QTY Unit Cost Tot. Cost Inventory on Hand QTY Unit Cost Tot. Cost Beginning Mar. 10 15 22 29 Ending Journal Entry Accounts Debit Credit Mar. 10 Record the journal entry for the sale on March 15th: Sold 40 units at $650. Journal Entry Accounts Debit Credit Mar. 15 Record the cost of goods sold associated with the sale on March 15th. Journal Entry Accounts Debit Credit Mar. 15 Record the purchase on March 22nd: Purchased 90 units at $375. Journal Entry Accounts Debit Credit Mar. 22 Record the journal entry for the sale on March 29th: Sold 77 units at $750. Journal Entry Accounts Debit Credit Mar. 29 Record the cost of goods sold associated with the sale on March 29th. Journal Entry Accounts Debit Credit Mar. 29 Record the cash payments on accounts. Journal Entry Accounts Debit Credit Mar. 31 Finally, prepare the journal entry for the operating expenses. Journal Entry Accounts Debit Credit Mar. 31

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