Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data fo
ID: 2568558 • Letter: P
Question
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 39 units at $64 10 Sale 27 units 15 Purchase 19 units at $68 20 Sale 16 units 24 Sale 12 units 30 Purchase 34 units at $71 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.
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 10 15 20 24 30 Inventory Sale Purchase Sale Sale Purchase 39 units at $64 27 units 19 units at $68 16 units 12 units 34 units at $71 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 PlayersExplanation / Answer
First in First Out (FIFO)
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-01
39
64
2496
Nov-10
27
64
1728
12
64
768
Nov-15
19
68
1292
12
64
768
19
68
1292
Nov-20
12
64
768
3
68
204
4
68
272
Nov-24
12
68
816
Nov-30
34
71
2414
3
68
204
34
71
2414
Total
3584
37
2618
(b) Based upon the preceding data, would you expect the inventory to be higher or lower using the Last in, first out Method
Lower because 3 Units will be valued at $ 64 each instead of $ 68 each.
First in First Out (FIFO)
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-01
39
64
2496
Nov-10
27
64
1728
12
64
768
Nov-15
19
68
1292
12
64
768
19
68
1292
Nov-20
12
64
768
3
68
204
4
68
272
Nov-24
12
68
816
Nov-30
34
71
2414
3
68
204
34
71
2414
Total
3584
37
2618
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