Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for August are as follows:

Inventory Purchases Sales

Aug. 1 775 units at $ 44 Aug. 10 360 units at $ 45 Aug 12 600 units

20 600 units at $48 14 415 units

31 500 units

Assume that the business maintain the business maintains a perpetual inventory system, costing by the first -in, first - out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in a spreadsheet form . Under FIFO, if units are in inventory at two different cost, 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.

Schedule of Cost of Merchandise Sold

FIFO Method

Prepaid Cell Phones