Refer to the data for E6-1B. However, instead of the FIFO method, assume Underwater Way uses the specific-identification method, assuming the following for each sale:
In E6-1B

August 11 Sale: 3 units from the beginning inventory, and the rest from the August 7 purchase.
August 28 Sale: all units are from the August 19 purchase.
Requirements
1. Prepare a perpetual inventory record for the watches on the specific identification basis to determine the cost of ending inventory and cost of goods sold for the month.
2. Journalize Underwater Way€™s inventory transactions using the perpetual specific-identification method. Assume that all purchases and sales are on account.

Transcribed Image Text:

Date Item Quantity Unit Cost Aug 1 Balance $106 $110 7 Purchase 11 Sale 19 Purchase 28 Sale 13 16 18 $112