Question

1. Perpetual Inventory Using FIFO

   Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

   Inventory		Purchases		Sales
   Dec. 1	320 units at $23	Dec. 10	160 units at $25	Dec. 12	224 units
   		Dec. 20	144 units at $27	Dec. 14	192 units
   				Dec. 31	96 units

   Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

   Schedule of Cost of Goods Sold
   FIFO Method
   Prepaid Cell Phones
   Date	Purchases Quantity	Purchases Unit Cost	Purchases Total Cost	Cost of Goods Sold Quantity	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
   Dec. 1								$	$
   Dec. 10		$	$
   Dec. 12					$	$
   Dec. 14
   Dec. 20
   Dec. 31
   Dec. 31	Balances					$			$

Answer 1