1) Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: June 1 Inventory 240 units at $78 10 Sale 180 units 15 Purchase 280 units at $80 20 Sale 220 units 24 Sale 90 units Purchase 320 units at $86 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale. b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method? 30 2) Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: June 1 Inventory 240 units at $78 10 Sale 180 units 15 Purchase 280 units at $80 Sale 220 units 24 Sale 90 units Purchase 320 units at $86 20 30 The business maintains a perpetual inventory system, costing by the last-in, first-out method. a) Determine the cost of merchandise sold for each sale and the inventory balance after each sale. 3) Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,550 units at $44 May 10 720 units at $45 May 12 1,200 units May 20 1,200 units at $48 May 14 830 units May 31 1,000 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? 4) Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,550 units at $44 May 10 720 units at $45 May 121,200 units May 20 1,200 units at $48 May 14 830 units May 31 1,000 units Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. 125.00 5) The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 2,500 $60.00 $150,000 10 Purchase 7,500 68.00 510,000 28 Sale 3,750 120.00 450,000 30 Sale 1,250 120.00 150,000 Feb. 5 Sale 500 120.00 60,000 10 Purchase 18,000 70.00 1,260,000 16 Sale 9,000 1,125,000 28 Sale 8,500 125.00 1,062,500 Mar. 5 Purchase 15,000 71.60 1,074,000 14 Sale 10,000 125.00 1,250,000 25 Purchase 2,500 72.00 180,000 30 Sale 8,750 125.00 1,093,750 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory, using the first-in, first-out method. Determine the total sales and the total cost of merchandise sold for the period. Journalize 2. the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your journal entry March 31. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31, 2016. 5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower
