Boston Beaches$,$Inc$.,$ carries a line of titanium cameras. Boston Beaches$,$Inc$.,$ uses the average cost method and a perpetual inventory system. The sales price of each camera is $ $185.$ Company records indicate the following activity for cameras for the month of July$$:

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Part $1$

Requirement $1.$ Prepare a perpetual inventory record for the cameras 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.

Start by entering the beginning inventory balances. Enter the transactions in chronological$$ order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual$$ record, calculate the quantity and total cost of inventory$$ purchased, sold, and on hand at the end of the period. $($Round average cost per unit to the nearest cent and all other amounts to the nearest$$ dollar.$)$

Part $2$Part $3$Part $4$Part $5$Part $6$

Avg Cost:

Purchases

Cost of goods sold

Inventory on hand

Unit

Total

Unit

Total

Unit

Total

Date

Qty

Cost

Cost

Qty

Cost

Cost

Qty

Cost

Cost

Jul

$1$

$7$

$11$

$19$

$28$

Total

Part $7$

Requirement $2.$ Journalize the inventory transactions for Boston Beaches$,$Inc$.,$ using the perpetual average cost method. Assume all purchases and sales are on account. $($Record debits$$ first, then credits. Exclude explanations from any journal$$ entries.$)$

July $7$: Purchased $10$ cameras for $ $91$ per camera.

Journal Entry

Date

Accounts

Debit

Credit

Jul

$7$

Part $8$

July $11$: Sold $11$ cameras.

Begin by journalizing the revenue from the sale of cameras on account. $($Do not journalize the cost related to the sale yet. We will do this in the next journal$$ entry.$)$

Journal Entry

Date

Accounts

Debit

Credit

Jul

$11$

Part $9$

July $11$: Sold $11$ cameras.

Now journalize the cost of the cameras sold.

Journal Entry

Date

Accounts

Debit

Credit

Jul

$11$

Part $10$

July $19$: Purchased $20$ cameras for $ $92$ per camera.

Journal Entry

Date

Accounts

Debit

Credit

Jul

$19$

Part $11$

July $28$: Sold $10$ cameras.

Begin by journalizing the revenue from the sale of cameras on account. $($Do not journalize the cost related to the sale yet. We will do this in the next journal$$ entry.$)$

Journal Entry

Date

Accounts

Debit

Credit

Jul

$28$

Part $12$

July $28$: Sold $10$ cameras.

Now journalize the cost of the cameras sold.

Journal Entry

Date

Accounts

Debit

Credit

Jul

$28$