Modern Lifestyle Furniture Began June with Merchandise Inventory of 45

Essay

Modern Lifestyle Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500.During the month,Modern purchased and sold merchandise on account as follows:
$$\begin{array} { | r | r | r | } \hline \text { June } 7 & \text { Purchase } & 25 \text { sofas @ } \$ 750 \text { each } \\\hline 14 & \text { Sale } & \text { 30 sofas @ } \$ 1,150 \text { each } \\\hline 18 & \text { Purchase } & 50 \text { sofas @ } \$ 775 \text { each } \\\hline 27 & \text { Sale } & \text { 35 sofas @ } \$ 1,200 \text { each } \\\hline\end{array}$$ Prepare a perpetual inventory record,using the FIFO inventory costing method,and determine the company's cost of goods sold,ending merchandise inventory,and gross profit.