Question
Question Content Area Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: Date Line Item Description Units and
Question Content Area
Perpetual inventory using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
Date | Line Item Description | Units and Cost |
---|---|---|
Nov. 1 | Inventory | 140 units at $29 |
10 | Sale | 110 units |
15 | Purchase | 150 units at $30 |
20 | Sale | 120 units |
24 | Sale | 35 units |
30 | Purchase | 140 units at $34 |
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Question Content Area
a. Determine the cost of 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.
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 | Nov. 1 | Nov. 1 | Nov. 1 | ||||||
Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | Nov. 10 | |||
Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | Nov. 15 | |||
fill in the blank 55ca03048f98fbc_16 | fill in the blank 55ca03048f98fbc_17 | fill in the blank 55ca03048f98fbc_18 | |||||||
Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | Nov. 20 | |||
fill in the blank 55ca03048f98fbc_25 | fill in the blank 55ca03048f98fbc_26 | fill in the blank 55ca03048f98fbc_27 | |||||||
Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | Nov. 24 | |||
Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | Nov. 30 | |||
fill in the blank 55ca03048f98fbc_40 | fill in the blank 55ca03048f98fbc_41 | fill in the blank 55ca03048f98fbc_42 | |||||||
Nov. 30 | Balances | Nov. 30 | Nov. 30 |
Question Content Area
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
HigherLower
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