Question
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 41 units at $40 10 Sale
Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
November 1 | Inventory | 41 units at $40 | |
10 | Sale | 30 units | |
15 | Purchase | 18 units at $42 | |
20 | Sale | 16 units | |
24 | Sale | 9 units | |
30 | Purchase | 24 units at $45 |
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 | fill in the blank 9d20d3f8f054036_1 | fill in the blank 9d20d3f8f054036_2 | fill in the blank 9d20d3f8f054036_3 | ||||||
Nov. 10 | fill in the blank 9d20d3f8f054036_4 | fill in the blank 9d20d3f8f054036_5 | fill in the blank 9d20d3f8f054036_6 | fill in the blank 9d20d3f8f054036_7 | fill in the blank 9d20d3f8f054036_8 | fill in the blank 9d20d3f8f054036_9 | |||
Nov. 15 | fill in the blank 9d20d3f8f054036_10 | fill in the blank 9d20d3f8f054036_11 | fill in the blank 9d20d3f8f054036_12 | fill in the blank 9d20d3f8f054036_13 | fill in the blank 9d20d3f8f054036_14 | fill in the blank 9d20d3f8f054036_15 | |||
fill in the blank 9d20d3f8f054036_16 | fill in the blank 9d20d3f8f054036_17 | fill in the blank 9d20d3f8f054036_18 | |||||||
Nov. 20 | fill in the blank 9d20d3f8f054036_19 | fill in the blank 9d20d3f8f054036_20 | fill in the blank 9d20d3f8f054036_21 | fill in the blank 9d20d3f8f054036_22 | fill in the blank 9d20d3f8f054036_23 | fill in the blank 9d20d3f8f054036_24 | |||
fill in the blank 9d20d3f8f054036_25 | fill in the blank 9d20d3f8f054036_26 | fill in the blank 9d20d3f8f054036_27 | |||||||
Nov. 24 | fill in the blank 9d20d3f8f054036_28 | fill in the blank 9d20d3f8f054036_29 | fill in the blank 9d20d3f8f054036_30 | fill in the blank 9d20d3f8f054036_31 | fill in the blank 9d20d3f8f054036_32 | fill in the blank 9d20d3f8f054036_33 | |||
Nov. 30 | fill in the blank 9d20d3f8f054036_34 | fill in the blank 9d20d3f8f054036_35 | fill in the blank 9d20d3f8f054036_36 | fill in the blank 9d20d3f8f054036_37 | fill in the blank 9d20d3f8f054036_38 | fill in the blank 9d20d3f8f054036_39 | |||
fill in the blank 9d20d3f8f054036_40 | fill in the blank 9d20d3f8f054036_41 | fill in the blank 9d20d3f8f054036_42 | |||||||
Nov. 30 | Balances | fill in the blank 9d20d3f8f054036_43 | fill in the blank 9d20d3f8f054036_44 |
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
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