Chapter 6, Problem P6.40PS

To determine

Introduction:

Perpetual Inventory System: The perpetual inventory system records and updates the inventory after each and every transaction. The inventory balance is updated after each transaction and it is kept up to date at every time.

FIFO method: FIFO Stands for First In First Out. Under this method, the units purchased first are assumed to be sold first and cost of goods sold is calculated accordingly. The ending inventory in the method includes the latest units purchased.

Requirement-1:

To determine: The Perpetual Inventory record for the month of December for Crystal cleaning services

To determine

Requirement -2:

To determine: The journal entries for the given dates