Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data fo

Question

Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
Apr. 1 Inventory46 units @ $5410 Sale35 units15 Purchase26 units @ $5620 Sale20 units24 Sale13 units30 Purchase34 units @ $59
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.

a.  Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Apr 45 54 2430 10-Apr 35 54 1890 10 54 540 15-Apr 26 56 1456 10 54 540 26 56 1456 20-Apr 10 54 540 10 56 560 16 56 896 24-Apr 13 56 728 3 56 168 30-Apr 34 59 2006 3 56 168 34 59 2006 TOTAL 60 3462 68 3718 37 2174

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