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 Cost Quantity Unit Total Quantity Unit Total Cost Cost Cost Cost Totals 15 RB.M 80 880 11 $86 $ 946 4 86 344 27 8 (concept check: Beg. Bal + Total Purchases - Cost of Goods Sold = Ending Inventory) The cost of the ending inventory balance using the FIFO method is $ 1.5 The cost of goods sold for the month using the FIFO method is $ 2., Record the cost of the rackets sold on the 17th. General Journal Account Name Debit Credit 3. 1.224 Merchandise Inventory 1.224 Part 2 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 $140 each) Purchases Cost of Goods Sold Date Quantity Unit Cost Total Quantity Unit Total Inventory Balance Quantity Unit Total Cost Cost Cost Cost Cost Totals 15 15 86 1,290 11 $80 $880 27 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