E6-28B (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 ti

E6-28B (Learning Objectives 1, 2: Show how to account for inventory transactions; apply the FIFO cost method) Accounting records for Thames Corporation yield the following data for the year ended March 31, 2012:

 

 

 

Inventory,   March   31,   2011 …………………………………………………………….

$  9,000

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

48,000

Sales of inventory—79% on account; 21% for cash (cost $38,000) ………

72,000

Inventory at FIFO, March 31,    2012 …………………………………………………

19,000

 

 

  ▶ Requirements

1.    Journalize Thames’ 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.