Question

Type or paste question here

Perpetual Inventory Using FIFO

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

November 1		Inventory	66 units at $89
10		Sale	46 units
15		Purchase	30 units at $93
20		Sale	26 units
24		Sale	13 units
30		Purchase	27 units at $98

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the 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.

Cost of the Goods Sold Schedule

First-in, First-out Method

DVD Players

Cost of the Goods Sold Schedule
First-in, First-out Method
DVD Players
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost

Answer 1

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov 1							66	$89	$5,874
10				46	$89	$4,094	20	$89	$1,780
15	30	$93	$2,790				20 30	$89 $93	$1,780 $2,790
20				20 6	$89 $93	$1,780 $558	24	$93	$2,232
24				13	$93	$1,209	11	$93	$1,023
30	27	$98	$2,646				11 27	$93 $98	$1,023 $2,646
Balance							38		$3,669

Columns are coloured alternatively, so as to identify the things in the table.