Question

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

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for portable DVD players are as follows:

 Apr. 1 Inventory 74 units @ \$87 10 Sale 55 units 15 Purchase 43 units @ \$91 20 Sale 24 units 24 Sale 21 units 30 Purchase 28 units @ \$96

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.

 Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players 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 Apr. 1 \$ \$ Apr. 10 \$ \$ Apr. 15 \$ \$ Apr. 20 Apr. 24 Apr. 30 Apr. 30 Balances \$

Under FIFO method ,units acquired first are sold first so ending inventory is left from purchase made at last.

 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 Apr 1 74 87 6438 Apr 10 55 87 4785 74-55 sold= 19 87 1653 Apr 15 43 91 3913 19 87 1653 43 91 3913 Apr 20 19 87 1653 24-19=5 91 455 43-5= 38 91 3458 APr 24 21 91 1911 38-21=17 91 1547 Apr 30 28 96 2688 17 91 1547 28 96 2688 Total 8804

Cost of goods sold = 8804

Ending inventory : Inventory as on April 30= 1547 +2688 = 4235

#### Earn Coins

Coins can be redeemed for fabulous gifts.