Question
Inventory FIFO Method Cricket Central carries an inventory of Cricket Balls and Cricket Bats. Cricket Central uses the FIFO method and a perpetual inventory system.
Inventory FIFO Method
Cricket Central carries an inventory of Cricket Balls and Cricket Bats. Cricket Central uses the FIFO method and a perpetual inventory system. The sales price of each Cricket Bat is $145. Business records indicate the following for a particular line of Cricket Centrals Cricket Bats:
Date |
|
1/7/19 | Cricket Central had 22 Cricket Bats on hand costing $85 each |
8/7/19 | Sold 9 Cricket Bats to the local cricket team. |
11/7/19 | Purchased 25 new Cricket Bats for $95 each. |
20/7/19 | Sold a further 20 Cricket Bats to a retailer. |
29/7/19 | Sold 8 more Cricket Bats to The Australian Cricket Team. |
Requirements
- Prepare a perpetual inventory record for the Cricket Bats. Then determine the amounts Cricket Central should report for ending inventory and cost of sales using the FIFO method.
- Journalise Cricket Centrals inventory transactions using the FIFO method.
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