Accounting for inventory using the perpetual system—FIFOConsider the December transactions...

Accounting for inventory using the perpetual system—FIFO

Consider the December transactions for Shine King Cleaning that were presented in Chapter 5. (Cost data has been removed from the sale transactions.)

Requirements

1. Prepare perpetual inventory records for December for Shine King using the FIFO method. (Note: You must figure cost on the 11th, 28th, and 31st.)

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2. Journalize and post the December transactions using the perpetual inventory record created in Requirement 1. Key all items by date. Compute each account balance, and denote the balance as Bal.

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3. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove the equality of debits and credits in the ledger.