10 Sale Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 76 units @ $64 53 units Purchase 43 units @ $67 32 units 24 Sale 25 units 30 Purchase 34 units @ $71 The business maintains a perpetual inventory system, costing by the first-in, first-out method. 15 20 Sale a. 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. 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. Perpetual Inventory Account First-in, First-out Method Portable Game Players Quantity Cost of Merchandise Sold Purchases Purchases Unit Total Cost Cost Cost of Cost of Merchandise Merchandise Sold Sold Unit Cost Total Cost Quantity Purchased Inventory Quantity Inventory Inventory Unit Total Cost Cost Date Apr. 1 Apr. 10 Apr. 15 I III Apr. 20 Apr. 24 Apr. 30 5 Apr. 30 Balances b. Based upon the preceding data, would you expect the ending inventory to be higher or lower using the tast-in, first-out method? FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available for sale during the year: Beginning inventory 24,000 units @ $43 Sale 10,468 units @ $62 First purchase 32,000 units @ $46 Sale 29,908 units @ $64 Second purchase 30,000 units @ $47 Sale 17,162 units @ $65 The firm uses the perpetual inventory system, and there are 28,462 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? 1,337,714 b. What is the total cost of the ending inventory according to LIFO? 1,124,000 x