Question

Nature Gnome Company is a service based company that rents canoes for use on local lakes and rivers during 2018. In addition to rental​ serices, at the beginning of January 2019​, Nature Gnome Company decided to carry and sell​ T-shirts with its logo printed on them. Nature Gnome Company uses the perpetual inventory system to account for the inventory. During February 2019​, Nature Gnome Company completed the following merchandising​ transactions:

Requirements:

1.

Assume Nature Gnome Company began February with 110 T-shirts in inventory that cost $13
each. Prepare the perpetual inventory records for

February using the FIFO inventory costing method.

2.

Provide a summary for the​ month, in both units and​ dollars, of the change in inventory in the following​ format:

	Number of T-shirts	Dollar Amount
Beginning Balance
Add: Purchases
Less: Cost of Goods Sold
Ending Balance

Feb.	2		Sold 70 T-shirts at $24 each.
	5		Purchased 50 ​T-shirts at $15 each.
	7		Sold 60 T-shirts for $24 each.
	8		Sold 10 ​T-shirts for $24 each.
	10		Nature Gnome Company realized the inventory was running​ low, so it placed a rush order and purchased 25 ​T-shirts. The premium cost for these shirts was $16 each.
	12		Placed a second rush order and purchased 45 T-shirts at $16 each.
	13		Sold 25 T-shirts for $24 each.
	15		Purchased 50 T-shirts for $15 each.
	20		In order to avoid future rush​ orders, purchased 220 T-shirts. Due to the volume of the​ order, Nature Gnome Company was able to negotiate a cost of $13 each.
	21		Sold 60 T-shirts for $24 each.
	22		Sold 20 ​T-shirts for $24 each.
	24		Sold 15 T-shirts for $24 each.
	25		Sold 40 ​T-shirts for $24 each.
	27		Sold 10 T-shirts for $24 each.

This is urgent can someone help me as soon as possible? I would really appreciate it. thank you!

Answer 1

DATE	PURCHASES UNITS COST($)	SALES UNITS COST($)	BALANCE UNITS * COST($)
OPENINGBAL			110 *13
FEB 2		70*13	40*13
FEB 5	50*15		40*13 50*15
FEB 7		40*13 20*15	30*15
FEB 8		10*15	20*15
FEB 10	25*16		20*15 25*16
FEB 12	45*16		20*15 25*16 45*16
FEB 13		20*15 5*16	20*16 45*16
FEB15	50*15		20*16 45*16 50*15
FEB20	220*13		20*16 45*16 50*15 220*13
FEB21		20*16 40*16	5*16 50*15 220*13
FEB22		5*16 15*15	35*15 220*13
FEB24		15*15	20*15 220*13
FEB25		20*15 20*13	200*13
FEB27		10*13	190*13