Question

Daytona Sales, which uses periodic inventory, has a beginning balance in men’s shirts of 14 at $15.00 each. Daytona Sales purchases men’s shirts in the order of:

Mar 7th, 24 shirts at $15.10 each,

Mar 12th, 24 shirts at $15.50 each,

Mar 18th, 24 shirts at $16.00 each, and

Mar 24th, 24 shirts at $16.25 each.

Daytona’s sales are in the order of:

For the week ending March 7th, 6 at $30.00,

For the week ending March 14th, 15 at $30.00,

For the week ending March 21st, 12 at $30.00,

For the week ending March 28th, 14 at $25.00, an

For the partial week ending March 31st, 6 at $30.00.

All indicated figures are exclusive of GST.

Required:

For the month of March, compute the quantity and value of sales, assume that all sales are cash, journalize that value as of March 31st.(6marks)

Answer 1