Perpetual Inventory Using FIFO

The following units of a particular item were available for sale during the calendar year:

Jan. 1	Inventory	4,000 units at $20
Apr. 19	Sale	2,500 units
June 30	Purchase	6,000 units at $24
Sept. 2	Sale	4,500 units
Nov. 15	Purchase	1,000 units at $25

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present 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.

Schedule of Cost of Goods Sold FIFO Method Purchases Cost of Goods Sold Inventory Quantity Date an. 1 pr. 19 Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Unit Cost Total Cost ,000 20 80,000 2,500 20 50,000 1,500 20 30,000 30 6,000 24 144,000 ept. 2 lov. 15 1,000 25 25,000 ec. 31 Balances