Part 1

Part 2

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 40 units $86 10 Sale 32 units Purchase 15 16 units $91 20 Sale 15 units 24 Sale 7 units 30 Purchase 24 units $96 The business maintains a perpetual inventory system, costing by the first-in, first-out method. 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 a. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Quantity Cost of Merchandise Sold Quantity Purchased Purchases Unit Cost Purchases Cost of Merchandise Cost of Merchandise Inventory Quantity Inventory Unit Cost Inventory Total Cost Date Sold Total Cost Total Cost Sold Unit Cost Apr 1 Apr 10 Apr 15 , 20 p. 24 . 30 p. Balances 30 b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method