Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data fo
ID: 2401015 • Letter: P
Question
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for July are as follows: Inventory uly 1 Purchases uly 10 uly 20 Sales uly 12 2,170 units uly 14 1,860 units July 31 930 units 3,100 units at $33 1,550 units at $35 1,395 units at $37 Assuming that the perpetual inventory system is used, costing by the FIFO method, determine the cost of the merchandise sold for each sale and the inventory balance after each sale. Schedule of Cost of Merchandise Sold FIFO Method Cell Phones Date Purchases July 1 Purchases Unit Cost Purchases Total Cost Cost of Merchandise Sold Quantity Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total nventory Cost Inventory Unit Cost Inventory Total Cos Quantity 3100 $33 $102300 July 12 July 14 July 31 uly Balances 31Explanation / Answer
Statement of Cost of merchandise sold
FIFO Method
Prepaid Cell Phones
Date
Purchases
Cost of merchandise sold
Ending Inventory
Qty
Cost
Total Cost
Qty
Cost
Total cost
Qty
Cost
Total Cost
July 1
3,100
33
1,02,300
July 10
1,550
35
54,250
3,100
33
1,02,300
1,550
35
54,250
July 12
2,170
33
71,610
930
33
30,690
1,550
35
54,250
July 14
930
33
30,690
620
35
21,700
930
35
32,550
July 20
1,395
37
51,615
620
35
21,700
1,395
37
51,615
July 31
620
35
21,700
1,085
37
40,145
310
37
11,470
TOTAL
1,68,020
40,145
Date
Purchases
Cost of merchandise sold
Ending Inventory
Qty
Cost
Total Cost
Qty
Cost
Total cost
Qty
Cost
Total Cost
July 1
3,100
33
1,02,300
July 10
1,550
35
54,250
3,100
33
1,02,300
1,550
35
54,250
July 12
2,170
33
71,610
930
33
30,690
1,550
35
54,250
July 14
930
33
30,690
620
35
21,700
930
35
32,550
July 20
1,395
37
51,615
620
35
21,700
1,395
37
51,615
July 31
620
35
21,700
1,085
37
40,145
310
37
11,470
TOTAL
1,68,020
40,145
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