Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:

Assume that the business 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. 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 Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Sales Inventory May 1 Purchases 3,500 units at $40 May 10 20 1,750 units at $42 1,575 units at $4 May 12 2,450 units 14 2,100 units 31 1,050 units Assume that the business 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 i LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold Quantity Unit Date Purchased Cost May 1 Purchases Purchases Total Cost May 10 FIFO Method Prepaid Cell Phones Cost of Cost of Merchandise Herchandise Merchandise Sold Sold Quantity Total Cost Sold Unit Cost Cost of Inventory Quantity Inventory Inventory May 12 May 14 May 201 May 31 May 31 Balances 00000 100000 0000 00000 00000