Perpetual Inventory Using FIFO

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

Apr. 1		Inventory	66 units @ $93
10		Sale	50 units
15		Purchase	34 units @ $98
20		Sale	22 units
24		Sale	17 units
30		Purchase	32 units @ $102

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 3.

Question Content Area

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.

Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Cost of Merchandise Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Apr. 1							fill in the blank 15d59d079062fa8_1	$fill in the blank 15d59d079062fa8_2	$fill in the blank 15d59d079062fa8_3
Apr. 10				fill in the blank 15d59d079062fa8_4	$fill in the blank 15d59d079062fa8_5	$fill in the blank 15d59d079062fa8_6	fill in the blank 15d59d079062fa8_7	fill in the blank 15d59d079062fa8_8	fill in the blank 15d59d079062fa8_9
Apr. 15	fill in the blank 15d59d079062fa8_10	$fill in the blank 15d59d079062fa8_11	$fill in the blank 15d59d079062fa8_12				fill in the blank 15d59d079062fa8_13	fill in the blank 15d59d079062fa8_14	fill in the blank 15d59d079062fa8_15
							fill in the blank 15d59d079062fa8_16	fill in the blank 15d59d079062fa8_17	fill in the blank 15d59d079062fa8_18
Apr. 20				fill in the blank 15d59d079062fa8_19	fill in the blank 15d59d079062fa8_20	fill in the blank 15d59d079062fa8_21	fill in the blank 15d59d079062fa8_22	fill in the blank 15d59d079062fa8_23	fill in the blank 15d59d079062fa8_24
				fill in the blank 15d59d079062fa8_25	fill in the blank 15d59d079062fa8_26	fill in the blank 15d59d079062fa8_27
Apr. 24				fill in the blank 15d59d079062fa8_28	fill in the blank 15d59d079062fa8_29	fill in the blank 15d59d079062fa8_30	fill in the blank 15d59d079062fa8_31	fill in the blank 15d59d079062fa8_32	fill in the blank 15d59d079062fa8_33
Apr. 30	fill in the blank 15d59d079062fa8_34	fill in the blank 15d59d079062fa8_35	fill in the blank 15d59d079062fa8_36				fill in the blank 15d59d079062fa8_37	fill in the blank 15d59d079062fa8_38	fill in the blank 15d59d079062fa8_39
							fill in the blank 15d59d079062fa8_40	fill in the blank 15d59d079062fa8_41	fill in the blank 15d59d079062fa8_42
Apr. 30	Balances					$fill in the blank 15d59d079062fa8_43			$fill in the blank 15d59d079062fa8_44

Question Content Area

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

HigherLower