Third Avenue Furniture Began June with Merchandise Inventory of 45

question 66

Essay

Third Avenue Furniture began June with merchandise inventory of 45 sofas that cost a total of $31,500. During the month, the company purchased and sold merchandise on account as follows:
$$\begin{array} { | r | r | r | } \hline \text { June } 7 & \text { Purchase } & 25 \text { sofas } @ \$ 750 \text { each } \\\hline 14 & \text { Sale } & 30 \text { sofas } @ \$ 1,150 \text { each } \\\hline 18 & \text { Purchase } & 50 \text { sofas } @ \$ 775 \text { each } \\\hline 27 & \text { Sale } & 35 \text { sofas } @ \$ 1,200 \text { each } \\\hline\end{array}$$ Prepare a perpetual inventory record, using the weighted-average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
| Purchases | Cost of Goods Sold | Inventory on Hand |
$$\begin{array} { | l | l | l | l | l | l | l | l | l | l | } \hline \text { Date } & \text { Quant } & \begin{array} { c } \text { Unit } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} & \text { Quant } & \begin{array} { c } \text { Unit } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} & \text { Quant } & \begin{array} { c } \text { Unit } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} \\\hline & & & & & & & & & \\\hline & & & & & & & & & \\\hline & & & & & & & & & \\\hline & & & & & & & & & \\\hline & & & & & & & & & \\\hline & & & & & & & & & \\\hline\end{array}$$

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Definitions:

Hypothalamus

A region of the brain that coordinates the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.

Limbic System

A complex set of brain structures located on both sides of the thalamus, involved in processing emotions, motivation, and memory.

Pons

A part of the brain located in the brainstem, critical for relaying signals between the cerebrum and the cerebellum, and involved in functions such as sleep and arousal.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often involving the autonomic nervous system.