Underwater World carries a line of waterproof watches. Underwater World uses the FIFO method and a perpetual inventory system. The sales price of each watch is $185. Company records indicate the following activity for waterproof watches for the month of March:

Requirements
1. Prepare a perpetual inventory record for the waterproof watches to determine the amount Underwater World should report for ending inventory and cost of goods sold using the FIFO method.
2. Journalize Underwater World€™s inventory transactions using the FIFO method. Assume that all purchases and sales are onaccount.

Transcribed Image Text:

Date Mar Balance Item Quantity Unit Cost $100 $108 7 Purchase 11 Sale 19 Purchase 28 Sale 10 13 $112