a)

b)

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 76 units at $50 10 Sale 51 units 42 units at $53 15 Purchase Sale 20 30 units 24 Sale 19 units 30 Purchase 21 units at $56 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 Firo, 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 Players Quantity Purchases Purchases Purchased Unit Cost Total Cost Cost of Cost of Quantity Goods Sold Goods Sold Inventory Inventory Inventory Unit Cost Total Cost Quantity Unit Cost Total Cost Sold Date Nov. 1 50 76 X SI 2.550 50 Nov. 10 2.226 53 Nov. 15 42 I No 20 Cost of the Goods Sold Schedule First-In, First-out Method DVD Players Quantity Purchased Purchases Purchases Unit Cost Total Cost Cost of Cost of Quantity Goods Sold Goods Sold Inventory Inventory Inventory Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Date Nov. 1 Nov. 10 51 50 2.50 76 X 50 Nov. 15 42 53 2.226 Nov. 20 53 lll. ll 53 100 m Nov. 24 56 21 1,176 Nov. 30 Nov. 30 Balances Feedback WY nurhased are assumed to be the first to be sold. Therefore, Perpetual Inventory Using LIFO Sales Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows: Inventory Purchases Dec. 1 2,600 units at $32 Dec. 10 1,300 units at $34 Dec 12 1,820 units Dec. 20 1,170 units at $36 Dec. 14 1,560 units Dec. 31 780 units a. Assuming that the perpetual Inventory system is used, costing by the LIFO method, 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 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column Schedule of Cost of Goods Sold LIFO Method Prepaid Cell Phones Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Date Dec. 1 Dec, 10 Dec. 12 888 Schedule of Cost of Goods Sold LIFO Method Prepaid Cell Phones Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Date Dec. 1 Dec, 10 Dec. 12 83 1 Dec. 14 Dec. 20 o o 1 l Dec. 31 Dec. 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method