Perpetual Inventory Using FIFO

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

June 1		Inventory	74 units @ $78
6		Sale	55 units
14		Purchase	30 units @ $81
19		Sale	27 units
25		Sale	14 units
30		Purchase	25 units @ $86

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

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 4.

a. 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.

Date	Quantity Purchased	Purchases Unit Cost	Purchases total cost	Quantity sold	Cost of merchandise sold unit cost	Cost of merchandise sold total cost	Inventory quantity	Inventory unit cost	Inventory total cost
June 1
June 6
June 14
June 19
June 25
June 30