Question

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows:

Apr. 1 Inventory 68 units @ $56

10 Sale 55 units

15 Purchase 29 units @ $59

20 Sale 17 units

24 Sale 15 units

30 Purchase 20 units @ $62

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.

Date

Quantity Purchased

Purchases Unit Cost

Purchases Total Cost

Quantity Cost of Merchandise Sold

Cost of Merchandise Sold Unit Cost

Cost of Merchandise Sold Total Cost

Inventory Quantity

Inventory Unit Cost

Inventory Total Cost

Answer 1