Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31. Boston sold 34 bicycles for $100 each.

Preparing a perpetual inventory record and journal entries-FIFO

Requirements

1. Prepare Boston Cycles perpetual inventory record assuming the company uses the FIFO inventory costing method.

2. Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account.

Answer rating: 100% (QA)

1 FIFO method Under FIFO method of valuing inventory inventories are sold in the order in which they are acquired Cost of goods sold is ascertained by ... View the full answer