Question

Refer to the data for E6-1B. However, instead of the FIFO method, assume Underwater Way uses the specific-identification method, assuming the following for each sale:
In E6-1B
August 11 Sale: 3 units from the beginning inventory, and the rest from the August 7 purchase.
August 28 Sale: all units are from the August 19 purchase.
Requirements
1. Prepare a perpetual inventory record for the watches on the specific identification basis to determine the cost of ending inventory and cost of goods sold for the month.
2. Journalize Underwater Way’s inventory transactions using the perpetual specific-identification method. Assume that all purchases and sales are on account.


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  • CreatedJuly 08, 2015
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