Beginning inventory, purchases, and sales data for tennis rackets are as follows: $\newline$ Aprit $3$ Inventory $21$ units @ $\$ 15$ $\newline$ $11$ Purchase $17$ units @ $\$ 14$ $\newline$ $14$ Sale $25$ units $\newline$ $21$ Purchase $13$ units @ $\$ 18$ $\newline$ $25$ Sale $17$ units $\newline$ Complete the inventory record assuming the business maintains a perpetual inventory system, and determine the cost of goods sold and ending inventory using FIFO.

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Q. Beginning inventory, purchases, and sales data for tennis rackets are as follows:

\newline

Aprit

3

Inventory

21

units @

\$ 15

\newline

11

Purchase

17

units @

\$ 14

\newline

14

Sale

25

units

\newline

21

Purchase

13

units @

\$ 18

\newline

25

Sale

17

units

\newline

Complete the inventory record assuming the business maintains a perpetual inventory system, and determine the cost of goods sold and ending inventory using FIFO.

Calculate initial inventory cost: Calculate the cost of the initial inventory. $\newline$ Initial inventory = $21$ units @ $\$15$ each. $\newline$ Total initial inventory cost = $21$ units * $\$15$ /unit = $\$315$ .
Add first purchase cost: Add the cost of the first purchase. $\newline$ First purchase = $17$ units @ $\$14$ each. $\newline$ Total cost of first purchase = $17$ units * $\$14$ /unit = $\$238$ .
Calculate cost of goods available: Calculate the cost of goods available for sale before the first sale. $\newline$ Cost of goods available for sale = Initial inventory cost + First purchase cost. $\newline$ Cost of goods available for sale = $\$315$ + $\$238$ = $\$553$ .
Record first sale using FIFO: Record the first sale using FIFO, which means the first items purchased are the first ones sold. $\newline$ First sale = $25$ units. $\newline$ Since we have $21$ units from initial inventory and $4$ units from the first purchase, we calculate the cost of the first sale. $\newline$ Cost of first sale = ($21$ \text{ units} * \$$15$/\text{unit}) + ($4$ \text{ units} * \$$14$/\text{unit}) = \$$315$ + \$$56$ = \$$371$.
Add second purchase cost: Add the cost of the second purchase.$\newline$Second purchase = $13$ units @ $\$18$ each.$\newline$Total cost of second purchase = $13$ units * $\$18$/unit = $\$234$.
Calculate cost after first sale: Calculate the cost of goods available for sale after the first sale and before the second sale.$\newline$Cost of goods available for sale = First purchase remaining units cost + Second purchase cost.$\newline$First purchase remaining units = $17$ units - $4$ units sold = $13$ units.$\newline$Cost of goods available for sale = ($13$ units * $\$14/unit$) + $\$234$ = $\$182$ + $\$234$ = $\$416$.
Record second sale using FIFO: Record the second sale using FIFO.$\newline$Second sale = $17$ units.$\newline$Since we have $13$ units remaining from the first purchase and $4$ units from the second purchase, we calculate the cost of the second sale.$\newline$Cost of second sale = ( $13$ \text{ units} * \$$14$/\text{unit}) + ($4$ \text{ units} * \$$18$/\text{unit}) = \$$182$ + \$$72$ = \$$254$.
Calculate ending inventory: Calculate the ending inventory after the second sale.$\newline$Ending inventory = Second purchase remaining units.$\newline$Second purchase remaining units = $13$ units - $4$ units sold = $9$ units.$\newline$Ending inventory cost = $9$ units * $\$\(18$/unit = \$$162$.}
Calculate total cost of goods sold: Calculate the total cost of goods sold.$\newline$Total cost of goods sold = Cost of first sale + Cost of second sale.$\newline$Total cost of goods sold = $\$371$ + $\$254$ = $\$625$.