Question: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 sellT-shirts with its logo printed on them. Canyon Canoe Company uses the perpetualinventory system to account for the inventory. During February 2019, Canyon CanoeCompany 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 inventorythat cost $5 each. Prepare the perpetual inventory records for February using theFIFO inventory costing method.
