Measuring ending inventory and cost of goods sold in a perpetual system—LIFORefer to the G...

Measuring ending inventory and cost of goods sold in a perpetual system—LIFO

Refer to the Golf Haven inventory data in Exercise. Assume that Golf Haven uses the perpetual LIFO cost method.

Requirements

1. Prepare Golf Haven’s perpetual inventory record for the putters on the LIFO basis. Then identify the cost of ending inventory and cost of goods sold for the month.

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2. Journalize Golf Haven’s inventory transactions using the perpetual LIFO method.

Exercise

Measuring and journalizing inventory and cost of goods sold in a perpetual system—FIFO

Golf Haven carries an inventory of putters and other golf clubs. Golf Haven uses the FIFO method and a perpetual inventory system. The sales price of each putter is $128.

Company records indicate the following for a particular line of Golf Haven’s putters:

Requirements

1. Prepare a perpetual inventory record for the putters. Then determine the amounts Golf Haven should report for ending inventory and cost of goods sold using the FIFO method.

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2. Journalize Golf Haven’s inventory transactions using the FIFO method.