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Question
Beginning inventory, purchases, and sales data for hammers are as follows:
| Mar. 3 | Inventory | 12 units at $15 | ||
| 11 | Purchase | 13 units at $17 | ||
| 14 | Sale | 18 units | ||
| 21 | Purchase | 9 units at $20 | ||
| 25 | Sale | 10 units |
Assuming the business maintains a perpetual inventory system, complete the subsidiary inventory ledger and determine the cost of merchandise sold and ending inventory under the following assumptions:
a. First-in, first-out
| | Purchases | Cost of Merchandise Sold | Inventory | ||||||
Date | Qty. | Unit Cost | Total Cost | Qty. | Unit Cost | Total Cost | Qty. | Unit Cost | Total Cost |
| Mar. 3 | | | |||||||
| 11 | | | | | | | |||
| 14 | | | | | | | |||
| 21 | | | | | | | |||
| 25 | | | | | |||||
| Balances | | | | ||||||
b. Last-in, first-out
| Purchases | Cost of Merchandise Sold | Inventory | |||||||
Date | Qty. | Unit Cost | Total Cost | Qty. | Unit Cost | Total Cost | Qty. | Unit Cost | Total Cost |
| Mar. 3 | | | |||||||
| 11 | | | | | | | |||
| 14 | | | | | | | |||
| 21 | | | | | | | |||
| 25 | | | | | |||||
| Balances | | | | ||||||
Answer
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