Question
Perpetual inventory using FIFO The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory Apr. 19 Sale
Perpetual inventory using FIFO
The following units of a particular item were available for sale during the calendar year:
Jan. 1
Inventory
Apr. 19
Sale
4,400 units at $40
2,500 units
June 30
Purchase
4,000 units at $45
Sept. 2
Sale
5,200 units
Nov. 15
Purchase
2,100 units at $46
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Open spreadsheet
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.
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