Question

The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period ending May 31, 2016, are as follows:

Date		Transaction	Number of Units		Per Unit		Total
March 1		Inventory	84		$225		$18,900
10		Purchase	168		270		45,360
28		Sale	112		750		84,000
30		Sale	70		750		52,500
April 5		Purchase	140		300		42,000
10		Sale	84		750		63,000
16		Sale	42		750		31,500
28		Purchase	140		330		46,200
May 5		Sale	84		790		66,360
14		Sale	112		790		88,480
25		Purchase	252		360		90,720
30		Sale	126		790		99,540

Required:

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 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.

Keats Office Supplies

Schedule of Cost of Merchandise Sold

FIFO Method

For the three months ended May 31, 2014

Purchases Cost of Merchandise Sold Inventory

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

Mar. 1 $ $

Mar. 10 $ $

Mar. 28 $ $

Mar. 30

Apr. 5

Apr. 10

Apr. 16

Apr. 28

May 5

May 14

May 25

May 30

May 31 Balances $ $

Answer 1