Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for portable DVD players are as follows:

June 1		Inventory	68 units @ $75
6		Sale	57 units
14		Purchase	37 units @ $80
19		Sale	16 units
25		Sale	23 units
30		Purchase	30 units @ $83

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,

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