Question: Refer to the data for E5-28B. However, instead of the FIFO method, assume Tee Time, Inc., uses the average cost method. Refer to data E5-28B,

Refer to the data for E5-28B. However, instead of the FIFO method, assume Tee Time, Inc., uses the average cost method.

Refer to data E5-28B,

Item Unit Cost Quantity 3 Date Jan 1 Balance $92 7 Purchase Sale 11 $96 11 19 Purchase 28 Sale 12 13 $98

Requirements
1. Prepare a perpetual inventory record for the putters 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 Tee Time, Inc.’s inventory transactions using the perpetual average cost method. Assume all purchases and sales are on account?

Item Unit Cost Quantity 3 Date Jan 1 Balance $92 7 Purchase Sale 11 $96 11 19 Purchase 28 Sale 12 13 $98

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