Question
Petes Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Petes Tennis Shop uses a periodic
Petes Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Petes Tennis Shop uses a periodic inventory system.
Date | Transactions | Units | Unit Cost | Total Cost | |||||||||||
August | 1 | Beginning inventory | 8 | $ | 141 | $ | 1,128 | ||||||||
August | 4 | Sale ($130 each) | 5 | ||||||||||||
August | 11 | Purchase | 10 | 131 | 1,310 | ||||||||||
August | 13 | Sale ($145 each) | 8 | ||||||||||||
August | 20 | Purchase | 10 | 121 | 1,210 | ||||||||||
August | 26 | Sale ($155 each) | 11 | ||||||||||||
August | 29 | Purchase | 11 | 111 | 1,221 | ||||||||||
$ | 4,869 | ||||||||||||||
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.
Problem 6-2B Part 7
7. If Petes chooses to report inventory using LIFO, record the LIFO adjustment.
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