E6- 1 5A (L earn i ng Obj ec tiv es 1 , 2: S ho w ho w t o acco u n t f or i n v en t ory t ransac t

E6-15A (Learning Objectives 1, 2: Show how to account for inventory transactions; apply the FIFO cost method) Accounting records for Dundas Corporation yield the following data for the year ended June 30, 2012:

 

 

 

Inventory,   June   30,    2011………………………………………………………………..

$10,000

Purchases of inventory (on account)…………………………………………………

46,000

Sales of inventory—83% on account; 17% for cash (cost $39,000) ………

75,000

Inventory  at  FIFO,  June  30, 2012 ……………………………………………………

17,000

 

 

 

▶ Requirements

1. Journalize Dundas’ inventory transactions for the year under the perpetual system.

2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement.