Question

Use the following informaation to anrer Exeraises E&-16 throngh E6-18 Golf Unlimited carries an inventory of putterrs and other golf clubs. The sales pce of cach putrer is $119. Company records indicate the following for a particular o E6-19 Ce pr Golf Unlimited's putters: Ass foll Unit Cost Quantity Item Date $ 53 24 Balance Nov. 1 20 Sale 6 70 30 Purchase 8 30 Sale 17 2 Sale 30 goods E6-16 Measuring and journalizing merchandise inventory and cost of : sold-FIFO Requirements 1. Prepare a perpetual inventory record for the putters assuming Golf Unlimited the FIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month. 2. Journalize Golf Unlimited's inventory transactions using the FIFO inventory c ing method. (Assume purchases and sales are made on account.) ses со. E6-17 Measuring ending inventory and cost of goods sold in a perpetual inventory system-LIFO Requirements 1. Prepare Golf Unlimited's perpetual inventory record for the putters assuming Golf Unlimited uses the LIFO inventory costing method. Then identify the cose of ending inventory and cost of goods sold for the month. 2. Journalize Golf Unlimiteds inventory transactions using the LIFO inventory cos ing method. (Assume purchases and sales are made on account.) 6-18 Measuring ending inventory and cost of goods sold in a perpetual inventory system-Weighted-average Requirements 1. Prepare Golf Unlimited's perpetual inventory record for the putters assuming Golf Unlimited uses the weighted-average inventory costing method. Round weighted- average cost per unit to the nearest cent and all other amounts to the nearest dollar Then identify the cost of ending inventory and cost of goods sold for the month 2. Journalize Golf Unlimited's inventory transactions using the weighted-average inventory costing method. (Assume purchases and sales are made on account.)

Answer 1

1. FIFO Method: Date Perpetual inventory method Purchases Cost of goods sold Quantity Unit | Total Quantity Unit Total cost cost cost cost Nov 1 Nov 6 Nov 8 20 units 53 1,060 Inventory on hand Quantity Unit Total cost cost 24 units 53 1.272 4 units 53 212 4 units 53 212 30 units 70 2.312 280 30 units 70 2,100 2.100 Nov 4 units 53 212 4units 70 17 26 units 2 units 70 70 1.820 140 Nov 2 units 70 140 30 Total 30 2,100 3,232 140 Therefore, ending inventory is $140. And cost of goods sold is $3,232. 2. Record journal entries:

Credit S Date Nov 6 Debit $ 2,380 Accounts title and explanation Accounts receivable (20*$119) Sales revenue (To record sales on account) 2,380 Nov 6 1,060 Cost of goods sold Merchandise inventory (To record cost of goods sold) 1,060 Nov 8 2.100 2,100 Merchandise inventory (30 *$70) Accounts payable (To record purchased inventory on account) Nov 17 3,570 Accounts receivable (30 * $119) Sales revenue (To record sales on account) 3,570 Nov 17 2,032 Cost of goods sold Merchandise inventory (To record the cost of goods sold) 2.032 Nov 30 238 Accounts receivable (2 *$119) Sales revenue (To record sales on account) 238 Nov 30 Cost of goods sold Merchandise inventory (To record the cost of goods sold)