Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data fo
ID: 2556372 • Letter: P
Question
Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
November 1 Inventory 38 units at $66 10 Sale 25 units 15 Purchase 20 units at $69 20 Sale 17 units 24 Sale 9 units 30 Purchase 24 units at $73 Cost of the Goods Sold Schedule First-in, First-out Method DVD Players Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Inventory Unit Cost Inventory Total Cost Date Nov. 1 Nov. 10 Nov. 15 0 0 Nov. 20 Nov. 24 0 III 0 - - * Nov. 30 Nov. 30 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?Explanation / Answer
Cost of Goods Sold Schedule
FIFO METHOD
Date
Qty Purchased
Unit Cost
Total Purchase Cost
Qty Sold
cost
Cost of goods sold
Inv.Qty
Unit Cost
Total cost
Nov1
38
66
2508
Nov10
25
66
1650
13
66
858
Nov15
20
69
1380
13
66
858
20
69
1380
Nov20
13
66
858
4
69
276
16
69
1104
Nov24
9
69
621
7
69
483
Nov30
24
73
1752
7
69
483
24
73
1752
TOTAL
3405
2235
Total Cost of goods sold = $ 3405
Ending Inventory Balance = $ 2235
.
.
.
.
.
ALL THE BEST !!!
Date
Qty Purchased
Unit Cost
Total Purchase Cost
Qty Sold
cost
Cost of goods sold
Inv.Qty
Unit Cost
Total cost
Nov1
38
66
2508
Nov10
25
66
1650
13
66
858
Nov15
20
69
1380
13
66
858
20
69
1380
Nov20
13
66
858
4
69
276
16
69
1104
Nov24
9
69
621
7
69
483
Nov30
24
73
1752
7
69
483
24
73
1752
TOTAL
3405
2235
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