This problem continues the Canyon Canoe Company situation from Chapter 5. At the beginning of the January 2019, Canyon Canoe Company decided to carry and sell T-shirts with its logo printed on them. Canyon Canoe Company uses the perpetual inventory system to account for the inventory. During February 2019, Canyon Canoe Company completed the following merchandising transactions:

Feb. 2 Sold 60 T-shirts at $10 each.

5 Purchased 50 T-shirts at $6 each.

7 Sold 45 T-shirts for $10 each.

8 Sold 20 T-shirts for $10 each.

10 Canyon Canoe Company realized the inventory was running low, so it placed a rush order and purchased 20 T-shirts. The premium cost for these shirts was $7 each.

12 Placed a second rush order and purchased 40 T-shirts at $7 each.

13 Sold 20 T-shirts for $10 each.

15 Purchased 50 T-shirts for $6 each.

20 In order to avoid future rush orders, purchased 150 T-shirts.

Due to the volume of the order, Canyon Canoe Company was able to negotiate a cost of $5 each.

21 Sold 40 T-shirts for $10 each.

22 Sold 35 T-shirts for $10 each.

24 Sold 20 T-shirts for $10 each.

25 Sold 45 T-shirts for $10 each.

27 Sold 40 T-shirts for $10 each.

Requirements

1. Assume Canton Canoe Company began February with 94 T-shirts in inventory that cost $5 each. Prepare the perpetual inventory records for February using the

FIFO inventory costing method.

2. Provide a summary for the month, in both units and dollars, of the change in inventory in the following format:

Dollar Amount Number of T-shirts Beginning Balance Add: Purchases Less: Cost of Goods Sold Ending Balance