Use the following information to answer Exercises E6-16 thro Golf Unlimited carr
ID: 2544356 • Letter: U
Question
Use the following information to answer Exercises E6-16 thro Golf Unlimited carries an of each putter is $119. Company records indicate the following for Golf Unlimited's putters: chapter6 ses E6-16 through E6-18 2 inventory of putters and other golf clubs. The sales Item Balance Sale Purchase Sale Sale Quantity 24 20 30 30 Date Unit Cost $ 53 Nov. 1 70 17 30 E6-16 Measuring and journalizing merchandise inventory and cost of goods Learning Objective 2 sold-FIFO Requirements 1. Prepare a perpetual inventory record for the putters assuming Golf Unlimited uses 1. COGS $3,232 the FIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month 2. lournalize Golf Unlimited's inventory transactions using the FIFO inventory cost- ing method. (Assume purchases and sales are made on account.)Explanation / Answer
1.
Cost of Ending Inventory = 140
Cost of Goods sold = 3,232
2.Journal Entries under perpetual inventory method:
Purchases Cost of Goods Sold Ending Inventory Date Qty Price per unit Total Qty Price per unit Total Qty Price per unit Total Opening 24 53 1272 06-Nov 20 53 1060 4 53 212 08-Nov 30 70 2100 4 53 212 30 70 2100 17-Nov 4 53 212 4 70 280 26 70 1820 30-Nov 2 70 140 2 70 140 Total COGS 3232