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Chapter 07 Homework (Application) Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 57 units @ $91 10 Sale 46 units 15 Purchase 31 units @ $96 20 Sale 15 units 24 Sale 20 units 30 Purchase 40 units @ $101 The business maintains a perpetual inventory system, costing by the first-in, first-out method. 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 3. a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Quantity Cost Cost of Cost of of Merchandise Merchandise Merchandise Sold Sold Unit Cost Sold Total Cost Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Inventory Quantity Inventory Unit Cost Invento Total Cos $ Apr. 1 Apr. 10 Apr. 15 11 00011 O o o [ ID 10100 Apr. 20 Chapter 07 Homework (Application) Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Quantity Cost Cost of Cost of of Merchandise Merchandise Merchandise Sold Sold Unit Cost Sold Total Cost Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Apr. 1 Apr. 10 Apr. 15 Apr. 20 111 111 Apr. 24 Apr. 30 111 0 Apr. 30 Balances Feedback b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method? Lower Feedback Feedback Check My Work