Measuring and journalizing inventory and cost of goods sold in a perpetual system—FIFO [20...

Measuring and journalizing inventory and cost of goods sold in a perpetual system—FIFO [20-25 min]

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.