PR 7-1A FIFO perpetual inventory OBJ.

2, 3

The beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month
period ending August 31, 2014, are as follows:
number Per
Transactio
Date n of Units Unit Total
June 1 inventory 500 $30.00 $15,000
1
0 Purchase 1,500 34.00 51,000
2
8 sale 750 50.00 37,500
3
0 sale 250 52.00 13,000
July 5 sale 100 $55.00 $ 5,500
1
0 Purchase 3,600 35.00 126,000
1
6 sale 1,800 56.00 100,800
2
8 sale 1,700 60.00 102,000
Aug. 5 Purchase 3,000 35.80 107,400
1
4 sale 2,000 60.00 120,000
2
5 Purchase 500 36.00 18,000
3
0 sale 1,750 60.00 105,000

Instructions
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.
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.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost as of August 31, 2014.
5. Based upon the preceding data, would you expect the inventory using the last-in, first-out
method to be higher or lower?

PR 7-2A LIFO perpetual inventory OBJ. 2, 3

The beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month
period are shown in Problem 7-1A.
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 last-in, first-out method.
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the
period.
3. Determine the ending inventory cost as of August 31, 2014.