Question

IV. (22) JR Tire Store reported the following October purchases and sales data for a line of tires it deals. The company uses a perpetual inventory system. 1) Prepare the company's inventory record using FIFO. 2) Identify cost of goods sold for the month and the profit of the month. 3). Journalize the transactions on October 18 and 26. Date Item Quantity (Units) Unit Price Oct. 1 Beginning Inventory $86 80 7 Sales 160 18 Purchase 26 Sales 160 ON 90

Answer 1

1]	Date	Prechases			COGS			Inventory
		Units	Price per Unit	Total Cost	Units	Price per Unit	Total Cost	Units	Price per Unit	Total Cost
	Oct-01							10	$          86	$        860
								2	$          80	$        160
	Oct-07				2	$               80	$        160
					6	$               86	$        516	4	$          86	$        344
	Oct-18	4	$                  90	$             360				4	$          90	$        360
								4	$          86	$        344
	Oct-26				4	$               86	$        344
					1	$               90	$          90	3	90	$        270
							$ 1,110
2]	COGS =			$         1,110
	Sales = 8*160+5*160 =			$         2,080
	Profit = 2080-1110 =			$            970
3]
Oct-18	Merchandise inventory			$             360
	Accounts payable				$              360
Oct-26	Accounts receivable			$             800
	Sales				$              800
	COGS			$             434
	Merchandise inventory				$              434