< Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 10 Sale 15 Purchase 20 Sale 24 Sale 30 Purchase 80 units @ $90 63 units 38 units @ $94 24 units 18 units 34 units @ $98 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. 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. 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. Perpetual Inventory Account First-in, First-out Method Portable Game Players Quantity Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Cost of Merchandise Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Inventory Sold Inventory Total Cost Inventory Quantity Unit Total Cost Cost Apr. 1 80 90 7,200 Apr. 10 63 90 5,670 17 90 1,530 Perpetual Inventory Account First-in, First-out Method Portable Game Players Quantity Purchases Purchases Date Quantity Purchased Unit Cost Total Cost of Merchandise Sold Cost of Merchandise Sold Cost of Merchandise Inventory Inventory Unit Cost Sold Total Cost Cost Inventory Quantity Unit Total Cost Cost Apr. 1 80 90 7,200 Apr. 10 63 V 90 5,670 17 90 1,530 Apr. 15 38 94 V 3,572 17 90 1,530 38 94 3,572 Apr. 20 17 90 1,530 V 17 x 94 1,598 X 21 X 94 1,974 X Apr. 24 18 94 1,692 18 X 94 1,692 X Apr. 30 34 98 V 3,332 18 X 94 1,692 X Apr. 30 Balances 34 10,956 X 98 3,332 6,716 X Feedback Check My Work Note that this exercise uses the perpetual inventory system. FIFO means that the first units purchased are assumed to be the first to be cold