Question 4 (A) - (7.5 Marks)

Inventory FIFO Method

Cricket Central carries an inventory of Cricket Balls and Cricket Bats. Cricket Central uses the FIFO method and a perpetual inventory system. The sales price of each Cricket Bat is $145. Business records indicate the following for a particular line of Cricket Centrals Cricket Bats:

Date
1/7/19	Cricket Central had 22 Cricket Bats on hand costing $85 each
8/7/19	Sold 9 Cricket Bats to the local cricket team.
11/7/19	Purchased 25 new Cricket Bats for $95 each.
20/7/19	Sold a further 20 Cricket Bats to a retailer.
29/7/19	Sold 8 more Cricket Bats to The Australian Cricket Team.

Requirements

1. Prepare a perpetual inventory record for the Cricket Bats. Then determine the amounts Cricket Central should report for ending inventory and cost of sales using the FIFO method.

2. Journalise Cricket Centrals inventory transactions using the FIFO method.