The beginning inventory of Merchandise at Waldo Co. and data on purchases and sales for a three-month period are as follows:

Date Transaction Number of Units Per Unit Total

March 3 Inventory 60 $1500 $90,000

8 Purchase 120 1800 216,000

11 Sale 80 5000 400,000

30 Sale 50 5000 250,000

April 8 Purchase 100 2000 200,000

10 Sale 60 5000 300,000

19 Sale 30 5000 150,000

28 Purchase 100 2200 220,000

May 5 Sale 60 5250 315,000

16 Sale 80 5250 420,000

21 Purchase 180 2400 432,000

28 Sale 90 5250 472,500

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.