Jameson€™s Sports Shop carries a line of waterproof watches. Jameson€™s Sports Shop uses the FIFO method and a perpetual inventory system. The sales price of each watch is $188. Company records indicate the following activity for waterproof watches for the month of August:

Requirements
1. Prepare a perpetual inventory record for the waterproof watches to determine the amount Jameson€™s Sports Shop should report for ending inventory and cost of goods sold using the FIFO method.
2. Journalize Jameson€™s Sports Shop€™s inventory transactions using the FIFO method. Assume that all purchases and sales are onaccount.

Transcribed Image Text:

Item Quantity Unit Cost Date Aug 1 Balance 10 12 14 $104 $108 7Purchase 11 Sale 19 Purchase 28 Sale $116 10