Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 420 units at $33 Dec.

  1. Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:

    Inventory Purchases Sales
    Dec. 1 420 units at $33 Dec. 10 210 units at $35 Dec. 12 294 units
    Dec. 20 189 units at $37 Dec. 14 252 units
    Dec. 31 126 units

    Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of 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.

    Schedule of Cost of Goods Sold
    FIFO Method
    Prepaid Cell Phones
    Date Purchases Quantity Purchases Unit Cost Purchases Total Cost Cost of Goods Sold Quantity Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost
    Dec. 1 $ $
    Dec. 10 $ $
    Dec. 12 $ $
    Dec. 14
    Dec. 20
    Dec. 31
    Dec. 31 Balances $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What is the percentile rank of Team As eligibility rate?

Answered: 1 week ago