(L.OBJ. 3) Measuring and journalizing inventory and cost of goods sold in a perpetual Sy...

(L.OBJ. 3) Measuring and journalizing inventory and cost of goods sold in a perpetual System—FIFO [20-25 min]

Putter’s Paradise carries an inventory of putters and other golf clubs. Putter’s Paradise uses the FIFO method and a perpetual inventory system. The sales price of each putter is $135. Company records indicate the following for a particular line of Putter’s Paradise putters:

Requirements

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

2. Journalize Putter’s Paradise inventory transactions using the FIFO method.