Question

Use the following information to answer Exercises E6-16 through E6-18. Golf Unlimited carries an inventory of putters and other golf clubs. The sales price of cach putter is $119. Company records indicate the following for a particular line of Golf Unlimited's putters: Quantity Date Nov. 1 Unit Cost $53 Item Balance Sale Purchase Sale Sale 30 70 30 Learning Objective 2 1. COGS 53,232 E6-16 Measuring and journalizing merchandise inventory and cost of goods sold-FIFO Requirements 1. Prepare a perpetual inventory record for the putters assuming Golf Unlimited uses the FIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month. 3239 2. Journalize Golf Unlimited's inventory transactions using the FIFO inventory cost- ing method. (Assume purchases and sales are made on account.) Learning Objective 2 1. Ending Merch. Inv. 5106 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 cost of ending inventory and cost of goods sold for the month. 22 2. Journalize Golf Unlimiteds inventory transactions using the LIFO inventory cost- ing method. (Assume purchases and sales are made on account.) Learning Objective 2 1. COGS $3,236 E6-18 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- 32 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

In the books of golf unlimited Journal entries Under FIFO method Date Description Debit Nov-06 Accounts Receivable 2380 Sales (being inventory sold) Purchases Unit cost Total Cost Qty Inventory record under FIFO method Sale Cost of goods sold Unit cost Total Cost Qty Unit cost Total Cost Qty Credit Date Qty Nov-01 Inventory in hand Unit cost Total Cost 53 1272 2380 Nov-06 20 119 2380 1060 53 212 1060 Nov-08 30 70 70 2100 Nov-06 Cost of goods sold Mercandise Inventory (being cost of goods sold) 212 2100 1060 Nov-17 30 1 19 3570 212 2100 = 4 Nov-08 Mercandise Inventory Accounts Payable (being inventory purchased) of 26 21 21119 70 70 1820 140 70 70 238 280 140 140 Nov- 300 Total 2 2100 6188 3570 Nov-17 Accounts Receivable Sales (being inventory sold) 3570 Total Cost of goods sold is $3,232 Cost of Inventory in hand is $140 2032 Nov-17 Cost of goods sold Mercandise Inventory (being cost of goods sold) 2032 Nov-30 Accounts Receivable Sales (being inventory sold) 140 Nov-30 Cost of goods sold Mercandise Inventory (being cost of goods sold)

Purchases Unit cost Total Cost Qty Inventory record under LIFO method Sale Cost of goods sold Unit cost Total Cost Qty Unit cost Total Cost Qty In the books of golf unlimited Journal entries Under LIFO method Date Description Debit Nov-06 Accounts Receivable 2380 Sales (being inventory sold) Date Qty Nov-01 Inventory in hand Unit cost Total Cosi 24 53 1272 Credit 2380 Nov-06 20 119 2380 20 53 1060 212 - o o o o o o 4 53 1060 Nov-06 Cost of goods sold Mercandise Inventory (being cost of goods sold) 30 o 70 o 2100 ot 1060 Nov-17 Nov-17 2100 Nov-08 Mercandise Inventory Accounts Payable (being inventory purchased) Nov-30 Total 2100 6 188 3266 106 3570 Nov-17 Accounts Receivable Sales (being inventory sold) 3570 Total Cost of goods sold is $3,266 Cost of Inventory in hand is $106 2100 Nov-17|Cost of goods sold Mercandise Inventory (being cost of goods sold) 238 Nov-30 Accounts Receivable Sales (being inventory sold) Nov-30 Cost of goods sold Mercandise Inventory (being cost of goods sold)

Inventory record under Weighted average method Purchases Sale Cost of goods sold Unit cost Total Cost Qty Unit cost Total Cost Qty Unit cost Total Cost Qty In the books of golf unlimited Journal entries Under Weighted Average cost method Date Description Debit Nov-06 Accounts Receivable 2380 Sales (being inventory sold) Date Qty Nov-01 Inventory in hand Unit cost Total Cost 1272 Credit 2380 Nov-06 20 119 2380 20 53 1060 4 212 Nov-08 30 70 2100 0 0 0 0 0 0 212 1060 Nov-06 Cost of goods sold Mercandise Inventory (being cost of goods sold) 2100 2312 1060 Nov-17 30 272 2100 Nov-08 Mercandise Inventory Accounts Payable (being inventory purchased) 20 Nov-30 0 0 0 2 119 238 2 68 1362 Total 1 11 2100116188 11 32361 68 136 1136 3570 Nov-17 Accounts Receivable Sales (being inventory sold) 3570 Total Cost of goods sold is $3,236 Cost of Inventory in hand is $136 2040 Nov-17 Cost of goods sold Mercandise Inventory (being cost of goods sold) 2040 238 Nov-30 Accounts Receivable Sales (being inventory sold) Nov-30 Cost of goods sold Mercandise Inventory (being cost of goods sold)