LIFO (Learning Objective 2) 10–15 min.

Refer to the data for E5-28B. However, instead of the FIFO method, assume Underwater World uses the LIFO method.

Requirements 1. Prepare a perpetual inventory record for the watches on the LIFO basis to determine the cost of ending inventory and cost of goods sold for the month.

2. Journalize Underwater World’s inventory transactions using the perpetual LIFO method. Assume that all purchases and sales are on account.

E5-30B. Average cost (Learning Objective 2) 10–15 min.
Refer to the data for E5-28B. However, instead of the FIFO method, assume that Underwater World uses the average cost method.
Requirements 1. Prepare a perpetual inventory record for the watches on the average cost basis to determine the cost of ending inventory and cost of goods sold for the month. Round average cost per unit to the nearest cent and all other amounts to the nearest dollar.
2. Journalize Underwater World’s inventory transactions using the perpetual average cost method. Assume that all purchases and sales are on account.AppendixLO1