Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

November 1		Inventory	66 units at $100
10		Sale	48 units
15		Purchase	36 units at $106
20		Sale	25 units
24		Sale	22 units
30		Purchase	35 units at $110

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the 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.

Cost of the Goods Sold Schedule First-in, First-out Method DVD Players

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov. 1							Answer	Answer	Answer
Nov. 10				Answer	Answer	Answer	Answer	Answer	Answer
Nov. 15		Answer	Answer				Answer	Answer	Answer
							Answer	Answer	Answer
Nov. 20				Answer	Answer	Answer	Answer	Answer	Answer
				Answer	Answer	Answer
Nov. 24				Answer	Answer	Answer	Answer	Answer	Answer
Nov. 30	Answer	Answer	Answer				Answer	Answer	Answer
							Answer	Answer	Answer
Nov. 30	Balances					Answer			Answer

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?