Putter’s Choice carries an inventory of putters and other golf clubs

Putter’s Choice 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 Putter’s Choice​’s ​putters.

DATE ITEM QUANTITY UNIT COST

NOV. 1 BALANCE 22 \$ 60

6 SALE 12

8 PURCHASE 25 \$ 81

17 SALE 25

30 SALE 5

1. Prepare Putter’s Choice​’s perpetual inventory record for the putters assuming Putter’s Choice uses the LIFO inventory costing method. Then identify the cost of ending inventory and cost of goods sold for the month.

2. Journalize Putter’s Choice​’s inventory transactions using the LIFO inventory costing method.​ (Assume purchases and sales are made on​ account.)

IDENTIFY THE COST OF ENDING INVENTORY OF THE MONTH.

THE COST OF ENDING INVENTORY USING LIFO METHOD IS \$

2. IDENTIFY THE COST OF GOODS SOLD FOR THE MONTH USING LIFO METHOD \$

JOURNALIZE PUTTERS CHOICE INVENTORY TRANSACTIONS USING LIFO INVENTORY COSTING METHOD.

ASSUME PURCHASES AND SALES ARE MADE ON ACCOUNT.

1. Begin by recording the entry to record the sale of the putters on account on the 6th.

2. Now record the cost of the putters sold on the 6th.

3. Journalize the purchase of the putters on account on the 8th.

4. Journalize the sale of the putters on account on the 17th.

5. Journalize the cost of the putters sold on the 17th.

6. Journalize the sale of the putters on account on the 30th.

7. Journalize the cost of the putters sold on the 30th.

QUESTION 2

Iron Man began August with 55units of iron inventory that cost \$ 35each. During August​, the company completed the following inventory​ transactions:
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Requirement 1. perpetual inventory record for the merchandise inventory using the FIFO inventory costing method.

Start by entering the beginning inventory balances. Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​ purchased, sold, and on hand at the end of the period.​ (Enter the oldest inventory layers​ first.)

UNITS UNIT COST UNIT SALES PRICE

AUG 3 SALE 45 \$ 83

8 PURCHASE 75 \$ 52

21 SALE 70 85

30 PURCHASE 10 55

1. perpetual inventory record for the merchandise inventory using the FIFO inventory costing method.

2. perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.

3. perpetual inventory record for the merchandise inventory using the​ weighted-average inventory costing method.

4. Determine the​ company’s cost of goods sold for August using​ FIFO, LIFO, and​ weighted-average inventory costing methods.

5. Compute gross profit for August using​ FIFO, LIFO, and​ weighted-average inventory costing methods.

6. If the business wanted to maximize gross​ profit, which method would it​ select?

Requirement 2. perpetual inventory record for the merchandise inventory using the LIFO inventory costing method.

Start by entering the beginning inventory balances. Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​ purchased, sold, and on hand at the end of the period. ​(Enter the oldest inventory layers​ first.)

Requirement 3. perpetual inventory record for the merchandise inventory using the​ weighted-average inventory costing method.

Start by entering the beginning inventory balances. Enter the transactions in chronological​ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual​ record, calculate the quantity and total cost of merchandise inventory​ purchased, sold, and on hand at the end of the period.

Requirement 4. Determine the​ company’s cost of goods sold for August using​ FIFO, LIFO, and​ weighted-average inventory costing methods.

THE COST OF GOODS SOLD AMOUNT FOR AUGUST USING FIFO INVENTORY COSTING IS \$

THE COST OF GOODS SOLD AMOUNT FOR AUGUST USING LIFO INVENTORY COSTING IS \$

THE COST OF GOODS SOLD AMOUNT FOR AUGUST USING WEIGHTED-AVERAGE INVENTORY COSTING IS \$

Here’s the SOLUTION

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