Kamlhani Imports is a furniture distributor. The following information is for one item of inventory, kitchen chairs, for the month of November. The store purchased and sold merchandise on account as follows:
Nov. 1 Opening inventory ………… 50 chairs at $ 50
3 Purchase …………………………. 60 chairs at $ 55
10 Sale …………………………. 100 chairs at $120
22 Purchase ……………………. 90 chairs at $ 60
24 Sale …………………………. 70 chairs at $140
Assume that Kamlhani Imports uses the FIFO cost method. All sales were made on account. Operating expenses were $14,400, with two-thirds paid in cash and the rest accrued in Accounts Payable.
Required
1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.
2. Make journal entries to record the company’s transactions.
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