Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows:
Apr. 1 | Inventory | 74 units @ $52 | |
10 | Sale | 52 units | |
15 | Purchase | 42 units @ $54 | |
20 | Sale | 27 units | |
24 | Sale | 24 units | |
30 | Purchase | 38 units @ $57 |
The business maintains a perpetual inventory system, costing by the
first-in, first-out method. Determine the cost of the merchandise
sold for each sale and the inventory balance after each sale,
presenting the data in the form illustrated in Exhibit 3. a. Under
FIFO, if units are in inventory at two different costs, enter the
units with the LOWER unit cost first in the Cost of Merchandise
Sold Unit Cost column and in the Inventory Unit Cost column.
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