1-A company made the following merchandise purchases and sales during the month of May: May 1 purchased 380 units at $15 each May 5 purchased 270 units at $17 each May 10 sold 400 units May 20 purchased 300 units at $22 each May 25 sold 400 units There was no beginning inventory. If the company uses the First In, First Out inventory valuation method and the perpetual inventory system, what would be the cost of the 150 units in ending inventory?
2-Harriet’s Toy Shop had net sales of $852,000. The gross profit was $230,000. Calculate Harriet’s cost of goods sold.
3-Complete the journal entries for Benson Company as follows: (be sure to label your answers appropriately)
(a) Alpha Inc returned merchandise to you for $1,000 that was purchased on account 2 weeks prior. The cost of the merchandise was $700
(b) Beta Company paid the $5,000 invoice for merchandise bought on account last week and took a sales discount of 1%