*HOMEWORK ASSIGNMENT HW 1: Texas Tennis Inic 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 Unit Cost S SO Date May 1 May 6 May 8 May 17 May 29 Item Balance Sale on account Purchase Sale on account Sale on account Quantity 20 9 15 15 3 S 86 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 Total Quantity Unit Total Quantity Unit Total Cost Cost Cost Cost Cost Cost RAM 80 S6 11 S86 880 344 $ 946 4 Totals 15 27 S (concept check: Beg Bal - Total Purchases - Cost of Goods SoldEnding 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 Journal 9 units Account Name Debit Credit sold Accounts Receivable 1.260 $140 sales Sales Revenue 1.260 price Record the cost of the rackets sold on the 6 General Journal Account Name Debit Credit 720 Merchandise Inventory 220 Fancial Accounting: Chapters 6 and 8 Record the purchase of the rackets on account on the 14 General Journal Account Name Debit Credit Record the sale of the rackets on account on the 17 General Journal Account Name Debit Credit Record the cost of the rackets sold on the 17 General Journal Account Name Debit 1.224 Credit Merchandise Inventory 1.224 Record the sale of the rackets on account on the 294 RM General Journal Account Name Debit Credit Record the cost of the rackets sold on the 29 General Journal Account Name Debit Credit 1. Prepare a perpetual inventory record for the rackets using the LIFO costing system. Then identify the cost of the ending inventory and cost of goods sold for the month. (sales price is still s140 each Date Purchases Quantity Unit Cost Total Cost Cost of Goods Sold Quantity Unit Total Cost Cost Taventory Balance Quantity Unit Total Cost Cost 15 86 1,290 11 $80 S880 15 27 Totals 8 (concept check: Beg. Bal - Total Purchases - Cost of Goods Sold Ending Inventory) The cost of the ending inventory balance using the LIFO method is $ 4 The cost of goods sold for the month using the LIFO method is $5 Journalize the transactions using the LIFO system (assume the purchase and sales are made on account) Record the sale of the tennis rackets on account on the 6 General Journal Account Name Debit Credit 1.260 1.260 M Record the cost of the rackets sold on the 6 General Journal Account Name Debit 720 Credit 720 Record the purchase of the rackets on account on the " General Journal Account Name Debit Credit Record the sale of the rackets on account on the 17 General Journal Account Name Debit Credit Record the cost of the rackets sold on the 17" General Journal Account Name Credit Debit 1.290 1.290 Record the sale of the rackets on account on the 2914 General Journal Account Name Debit Credit Record the cost of the rackets sold on the 294 General Journal Account Name RKM Debit Credit Part 2 Check number: Total credits to Sales Revenue = $3,780
