All rights reserved: Dr. Robert R. McWhorter-Financial Accounting: Chapters 6 and 8 ******HOMEWORK ASSIGNMENT** 13 HW 1: Texas Tennis Inc. carries an inventory of tennis rackets and related tennis products. The sales price of each racket is $140. Company records indicate the following activity for a particular line of rackets Date May 1 Item Balance Quantity 20 Unit Cost $80 May 6 Sale on account 9 May 8 Purchase 15 $86 May 17 Sale on account 15 May 29 Sale on account 3 Part 1 1. Prepare a perpetual inventory record for the rackets using the FIFO costing system. Then identify the cost of the ending inventory and cost of goods sold for the month. Purchases Cost of Goods Sold Inventory Balance: Date Quantity Unit Cost Total Quantity Unit Total Quantity Unit Total Cost Cost Cost Cost Cost B.M 80 880 11 $86 $ 946 4 86 344 27 8 Totals 15 (concept check: Beg. Bal+Total Purchases-Cost of Goods Sold - Ending Inventory) The cost of the ending inventory balance using the FIFO method is $ 1. The cost of goods sold for the month using the FIFO method is $ 2. 2. Journalize the transactions using the FIFO system. (assume the purchase and sales are made on account) Record the sale of the tennis rackets on account on the 6. General Journali Account Name Accounts Receivable Sales Revenue Record the cost of the rackets sold on the 6. 9 units Debit 1,260 Credit sold x $140 sales 1.260 price General Journal Account Name Debit Credit 720 Merchandise Inventory 720