Question
erpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 220
erpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:
| Inventory | Purchases | Sales | |||
|---|---|---|---|---|---|
| Dec. 1 | 220 units at $28 | Dec. 10 | 110 units at $30 | Dec. 12 | 154 units |
| Dec. 20 | 99 units at $32 | Dec. 14 | 132 units | ||
| Dec. 31 | 66 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
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started