Chapter 5, Problem 28BE

FIFO (Learning Objective 2) 10-15 min.

Tee Time, Inc., carries a line of monogrammed putters. Tee Time uses the FIFO method and a perpetual inventory system. The sale price of each putter is $170. Company records indicate the following activity for putters for the month of January:

Date	Item	Quantity	Unit Cost
Jan 1	Balance	3	$92
7	Purchase	11	$96
11	Sale	12
19	Purchase	13	$98
28	Sale	8

Requirements

Prepare a perpetual inventory record for the putters to determine the amount Tee Time, Inc., should report for ending inventory and cost of goods sold using the FIFO method.

Journalize Tee Time, Inc.’s inventory transactions using the FIFO method. Assume all purchases and sales are on account.