Perpetual Inventory Using FIFO

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

November 1		Inventory	64 units at $96
10		Sale	42 units
15		Purchase	34 units at $102
20		Sale	28 units
24		Sale	12 units
30		Purchase	38 units at $106

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

a. Determine the cost of the 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 the 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 64 $ 96 $ 6,144 Nov. 10 42 $ 96 $ 4,032 22 96 2,112 Nov. 15 34 102 $ 3,468 22 96 2,112 34 102 3,468 Nov. 20 96 2,112 20 102 2,040 102 612 Nov. 24 102 1,224 10 102 1,020 Nov. 30 38 106 4,028 10 102 1,020 38 106 4,028 Nov. 30 Balances $ 7,980 $ 5,048