Question 1.

Exhibit 3 Entries and Perpetual Inventory Account (FIFO) Item 127B Jan. 4 Accounts Receivable 21,000 Cost of Sales 21,000 Purchases Goods Sold 4 Cost of Goods Sold 14,000 Inventory Inventory 14,000 Unit Total Unit Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost 10 Inventory 11,200 Jan. 1 1,000 20.00 20,000 Accounts Payable 11 200 4 700 20.00 14,000 300 20.00 6,000 10 500 22.40 11,200 300 20.00 6,000 22 Accounts Receivable 10,800 500 22.40 11,200 Sales 10,800 22 300 20.00 6,000 22 Cost of Goods Sold 7,344 60 22.40 1,344 440 22.40 9,856 Inventory 7,344 28 240 22.40 5,376 200 22.40 4,480 30 600 23.30 13,980 200 22.40 4,480 28 Accounts Receivable 7,200 600 23.30 Sales 13,980 7,200 31 Balances 28 Cost of Goods Sold 5,376 26,720 18,460 Inventory 5,376 Cost of 30 Inventory 13,980 January 31 Accounts Payable goods sold 13,980 InventoryExhibit 4 Entries and Perpetual Inventory Account (LIFO) Item 127B Jan. 4 Accounts Receivable 21,000 Sales Cost of 21,000 4 Cost of Goods Sold 14,000 Purchases Goods Sold Inventory Inventory 14,000 Unit Total Unit Total Unit Total Date Quantity Cost Cost Quantity Cost Cost Quantity Cost Cost 10 Inventory 11,200 Jan. 1 1,000 20.00 20,000 Accounts Payable 11,200 4 700 20.00 14,000 300 20.00 6,000 10 500 22.40 11,200 300 20.00 6,000 22 Accounts Receivable 10,800 500 22.40 11,200 Sales 10,800 22 360 22.40 8.064 300 20.00 6,000 22 Cost of Goods Sold 8,064 140 22.40 3,136 Inventory 8,064 28 140 22.40 3,136 200 20.00 4,000 100 20.00 2,000 28 Accounts Receivable 7,200 30 600 23.30 13,980 200 20.00 4,000 Sales 7,200 600 23.30 13,980 28 Cost of Goods Sold 5,136 31 Balances 27,200 17,980 Inventory 5,136 30 Inventory 13,980 Accounts Payable 13,980 Cost of January 31 goods sold InventoryPerpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 71 units at $44 10 Sale 54 units 15 Purchase 36 units at $47 20 Sale 24 units 24 Sale 12 units 30 Purchase 29 units at $49 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 Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost 33: WHERE. III .I .999 I l[:]ll[jll[:]llliill Nov. 30 Balances C] b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method? V BE DD EDD higher or lower? Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Sales Dec. 1 4,000 units at $40 Dec. 10 2,000 units at $42 Dec. 12 2,800 units Dec. 20 1,800 units at $44 Dec. 14 2,400 units Dec. 31 1,200 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of goods sold for each sale and the inventory balance aer each sale, presenting the data in the form illustrated in Exhibit 4, Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method Prepaid Cell Phones Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost $37 CJCJC] lll ll li:J||[:J||[:JI I lCiICilCillllll ED BU ED Dec. 31 Dec. 31 Balances [:] b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method? v D: D: DD: Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory 20 units @ $18 11 Purchase 13 units @ $17 14 Sale 20 units 21 Purchase 13 units @ $22 25 Sale 15 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and determine the cost of goods sold and ending inventory using LIFO. Cost of Purchases Goods Sold Inventory Date Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost April 3 11 14 to 21 $ 25 Total Cost of goods sold Ending inventory value $Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 78 units at $96 10 Sale 51 units 15 Purchase 103 units at $101 20 Sale 59 units 24 Sale 15 units 30 Purchase 21 units at $107 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. ) Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method DVD Players Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Inventory Inventory Unit Cost Total Cost 5371 WE? III II IIClICl III II IIClICl DUDE DUDE Nov. 30 Balances C]