Question
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 120 units at $39 10 Sale
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Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
November 1 Inventory 120 units at $39 10 Sale 90 units 15 Purchase 140 units at $40 20 Sale 110 units 24 Sale 45 units 30 Purchase 160 units at $43
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
a. Determine the cost of 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 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 Nov. 10 Nov. 15 Nov. 20 Nov. 24 Nov. 30 Nov. 30 Balances
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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Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
| November 1 | Inventory | 120 units at $39 | |
| 10 | Sale | 90 units | |
| 15 | Purchase | 140 units at $40 | |
| 20 | Sale | 110 units | |
| 24 | Sale | 45 units | |
| 30 | Purchase | 160 units at $43 |
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
a. Determine the cost of 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 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 | |||||||||
| Nov. 10 | |||||||||
| Nov. 15 | |||||||||
| Nov. 20 | |||||||||
| Nov. 24 | |||||||||
| Nov. 30 | |||||||||
| Nov. 30 | Balances | ||||||||
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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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
