7-3, 7-4 FIFO And LIFO Beginning inventory purchases

EX 7-3 Perpetual inventory using FIFO OBJ. 2, 3 Beginning inventory, purchases, and sales data for portable DVD players are as follows: June 1 10 15 20 24 30 Inventory Sale Purchase Sale sale Purchase 240 units at $78 180 units 280 units at $80 220 units 90 units 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, presenting the data in the form illustrated in Exhibit 4. b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method? OBJ. 2, 3 EX 7-4 Perpetual inventory using LIFO Assume that the business in Exercise 7-3 maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 5.