Perpetual inventory using FIFO

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

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.

First$-$in$,$ First$-$out Method

DVD Players

Cost of Cost of

Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory

Date

Purchased Unit Cost Total Cost

Sold

Unit Cost Total Cost Quantity Unit Cost 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?