Refer to the data for E5-16A. However, instead of the FIFO method, assume Jamesons Sports Shop uses

Question:

Refer to the data for E5-16A. However, instead of the FIFO method, assume Jameson€™s Sports Shop uses the average cost method.

Requirements
1. Prepare a perpetual inventory record for the watches 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.
2. Journalize Jameson€™s Sports Shop€™s inventory transactions using the perpetual average cost method. Assume that all purchases and sales are onaccount.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...