Perpetual inventory using FIFO

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

Date	Line Item Description	Units and Cost
Nov. 1	Inventory	63 units at $50
10	Sale	50 units
15	Purchase	37 units at $53
20	Sale	20 units
24	Sale	14 units
30	Purchase	24 units at $55

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

Question Content Area

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.

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. 1	Nov. 1	Nov. 1
Nov. 10				Nov. 10	Nov. 10	Nov. 10	Nov. 10	Nov. 10	Nov. 10
Nov. 15	Nov. 15	Nov. 15	Nov. 15				Nov. 15	Nov. 15	Nov. 15
							fill in the blank b90ec00c3fd0f99_16	fill in the blank b90ec00c3fd0f99_17	fill in the blank b90ec00c3fd0f99_18
Nov. 20				Nov. 20	Nov. 20	Nov. 20	Nov. 20	Nov. 20	Nov. 20
				fill in the blank b90ec00c3fd0f99_25	fill in the blank b90ec00c3fd0f99_26	fill in the blank b90ec00c3fd0f99_27
Nov. 24				Nov. 24	Nov. 24	Nov. 24	Nov. 24	Nov. 24	Nov. 24
Nov. 30	Nov. 30	Nov. 30	Nov. 30				Nov. 30	Nov. 30	Nov. 30
							fill in the blank b90ec00c3fd0f99_40	fill in the blank b90ec00c3fd0f99_41	fill in the blank b90ec00c3fd0f99_42
Nov. 30	Balances					Nov. 30			Nov. 30

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?