Question
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 50 units @ $98 10
Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
Apr. 1 | Inventory | 50 units @ $98 | |
10 | Sale | 39 units | |
15 | Purchase | 28 units @ $104 | |
20 | Sale | 20 units | |
24 | Sale | 10 units | |
30 | Purchase | 24 units @ $110 |
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.
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 | $ | $ | |||||||
Apr. 10 | $ | $ | |||||||
Apr. 15 | $ | $ | |||||||
Apr. 20 | |||||||||
Apr. 24 | |||||||||
Apr. 30 | |||||||||
Apr. 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?
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