EX 7-6 Perpetual inventory using FIFO:

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 3. Inventory: July 1 800 units at $45. Purchases: July 10 500 units at $50, July 20 150 units at $52. Sales: July 12 700 units, July 14 300 units, July 31 250 units.

Date Purchases Cost of Merchandise Sold Inventory Quantity "Unit Cost" "Total Cost" Quantity "Unit Cost" "Total Cost" Quantity "Unit Cost" "Total Cost" July 1 800 $45 $36,000 10 12 14 20 31 31 Balances