(L.OBJ. 3) Journalizing inventory transactions— FIFO [5—10 min] Use the Innovation Cycl...

(L.OBJ. 3) Journalizing inventory transactions— FIFO [5—10 min]

Use the Innovation Cycles data in Short Exercise 6-3 to journalize

Requirements

1. The March 16 purchase of inventory on account.

2. The March 31 sale of inventory on account. Innovation sold each bicycle for $120.

3. Cost of goods sold tinder FIFO on March 31.

Exercise 6-3.

(L.OBJ. 3) Perpetual inventory record—FIFO [10 min].

Innovation Cycles uses the FIFO inventory method. Innovation starred March with 10 bicycles that cost $60 each. On March 16, Innovation bought 20 bicycles at $70 each. On March 31, Innovation old 25 bicycles.

Requirement

1. Prepare Innovation’s perpetual inventory record.