ex. 7-6

Chapter 7 Inventories O8J.2, ntory balanceBeginning inventory, purchases, and sales data for prepaid cell phones for Ma $20,160 EX 7-5 Perpetual inventory using LIFO follows: Sales Purchases Inventory May 1 1,200 units 830 units May 12 1,550 units at $44May 10 20 720 units at $45 1,200 units at $48 14 31 1,000 units a. Assuming that the perpetual inventory system is used, costing by the LIFO meth determine the cost of merchandise sold for each sale and the inventory balance each sale, presenting the data in the form illustrated in Exhibit 5. after b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? balance 120 Perpetual inventory using FIFO EX 7-6 Assume that the business in Exercise 7-5 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, presenting the data in the form illustrated in Exhibit 4 0BJ.2,3