Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory 18 units @ $14 11 Purchase 12 units @ $18 14 Sale 25 units 21 Purchase 13 units @ $19 25 Sale 8 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using FIFO. Cost of Purchases Goods Sold Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost April 3 11 $4 14 21 25 Total Cost of goods sold Ending inventory value
Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory 18 units @ $14 11 Purchase 12 units @ $18 14 Sale 25 units 21 Purchase 13 units @ $19 25 Sale 8 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using FIFO. Cost of Purchases Goods Sold Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost April 3 11 $4 14 21 25 Total Cost of goods sold Ending inventory value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack

Transcribed Image Text:### Understanding Perpetual Inventory System and FIFO Method
#### Beginning Inventory, Purchases, and Sales of Tennis Rackets (April)
- **April 3:**
- Beginning Inventory: 18 units @ $14 each
- **April 11:**
- Purchase: 12 units @ $18 each
- **April 14:**
- Sale: 25 units
- **April 21:**
- Purchase: 13 units @ $19 each
- **April 25:**
- Sale: 8 units
#### Step-by-Step Guide to Completing the Inventory Cost Card
The table is divided into three sections:
1. **Purchases**
2. **Cost of Goods Sold**
3. **Inventory**
Here’s how to fill out each section assuming a perpetual inventory system and FIFO (First-In-First-Out) method:
**Purchases Section:**
- **April 3:**
- Qty: 18
- Unit Cost: $14
- Total Cost: $252
- **April 11:**
- Qty: 12
- Unit Cost: $18
- Total Cost: $216
- **April 21:**
- Qty: 13
- Unit Cost: $19
- Total Cost: $247
**Cost of Goods Sold (COGS) Section:**
- **April 14:**
- Qty: 18
- Unit Cost: $14
- Total Cost: $252
- **April 14:**
- Qty: 7
- Unit Cost: $18
- Total Cost: $126
- **April 25:**
- Qty: 8
- Unit Cost: $18
- Total Cost: $144
**Inventory Section:**
- **April 11:**
- Qty: 18
- Unit Cost: $14
- Total Cost: $252
- Qty: 12
- Unit Cost: $18
- Total Cost: $216
- **April 14:**
- Qty: 5
- Unit Cost: $18
- Total Cost: $90
- **April 21:**
- Qty: 5
- Unit Cost: $18
- Total Cost: $90
- Qty: 13
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education