Measuring and journalizing inventory and cost of goods sold in a perpetual system—FIFO
Golf Haven carries an inventory of putters and other golf clubs. Golf Haven uses the FIFO method and a perpetual inventory system. The sales price of each putter is $128. Company records indicate the following for a particular line of Golf Haven’s putters:
1. Prepare a perpetual inventory record for the putters. Then determine the amounts Golf Haven should report for ending inventory and cost of goods sold using the FIFO method.
2. Journalize Golf Haven’s inventory transactions using the FIFO method.