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EX 7-3 Perpetual inventory using FIFO OBJ. 2, 3 Beginning inventory, purchases, and sales data for portable DVD players are as follows:

OBJ. 1

Inventory balance, April 30, $7,480

April 1 Inventory 6 Sale

14 Purchase 19 Sale 25 Sale 30 Purchase

120 units at $39 90 units

140 units at $40 110 units

45 units 160 units at $43

Inventory balance, April 30, $7,465

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. 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.

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

Assume that the business in Exercise 7-3 maintains a perpetual inventory system,

costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4.