Use the following information to answer Exercises E6-16 through E6-18. Golf Unli

Question

Use the following information to answer Exercises E6-16 through E6-18.

Golf Unlimited carries an inventory of putters and other golf clubs. The sales price of each putter is $119. Company records indicate the following for a particular line of Golf Unlimited’s putters:

Date

Item

Quantity

Unit Cost

E6-16 Measuring and journalizing merchandise inventory and cost of goods sold—FIFO

Learning Objective 2

1. COGS $3,232

Requirements

Prepare a perpetual inventory record for the putters assuming Golf Unlimited uses the FIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month.

Journalize Golf Unlimited’s inventory transactions using the FIFO inventory costing method. (Assume purchases and sales are made on account.)

Date

Item

Quantity

Unit Cost

Nov. 1 Balance 24 $ 53 6 Sale 20 8 Purchase 30 ?70 17 Sale 30 30 Sale ?2

Explanation / Answer

Solution:

Computation of ending inventory COGS under FIFO - Golf Unlimited Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-Nov 24 $53.00 $1,272 0 $0.00 $0 0 $0.00 $0 24 $53.00 $1,272.00 6-Nov 24 $53.00 $1,272 0 $0.00 $0 20 $53.00 $1,060 4 $53.00 $212.00 8-Nov 4 $53.00 $212 30 $70.00 $2,100 0 $0.00 $0 4 $53.00 $212.00 30 $70.00 $2,100.00 17-Nov 4 $53.00 $212.00 0 $0.00 $0.00 4 $53.00 $212.00 4 $70.00 $280.00 30 $70.00 $2,100.00 26 $70.00 $1,820.00 30-Nov 4 $70.00 $280.00 0 $0.00 $0.00 2 $70.00 $140.00 2 $70.00 $140.00 Total $3,232.00 $140.00

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