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.

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.

b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

Transcribed Image Text:

120 units at $39 90 units 140 units at $40 110 units 45 units 160 units at $43 Nov. Inventory Sale 10 Purchase 15 20 24 Sale Sale Purchase 30