Perpetual Inventory Using FIFO

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

November 1		Inventory	41 units at $40
10		Sale	30 units
15		Purchase	18 units at $42
20		Sale	16 units
24		Sale	9 units
30		Purchase	24 units at $45

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 FIFO, if 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
Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov. 1							fill in the blank 9d20d3f8f054036_1	fill in the blank 9d20d3f8f054036_2	fill in the blank 9d20d3f8f054036_3
Nov. 10				fill in the blank 9d20d3f8f054036_4	fill in the blank 9d20d3f8f054036_5	fill in the blank 9d20d3f8f054036_6	fill in the blank 9d20d3f8f054036_7	fill in the blank 9d20d3f8f054036_8	fill in the blank 9d20d3f8f054036_9
Nov. 15	fill in the blank 9d20d3f8f054036_10	fill in the blank 9d20d3f8f054036_11	fill in the blank 9d20d3f8f054036_12				fill in the blank 9d20d3f8f054036_13	fill in the blank 9d20d3f8f054036_14	fill in the blank 9d20d3f8f054036_15
							fill in the blank 9d20d3f8f054036_16	fill in the blank 9d20d3f8f054036_17	fill in the blank 9d20d3f8f054036_18
Nov. 20				fill in the blank 9d20d3f8f054036_19	fill in the blank 9d20d3f8f054036_20	fill in the blank 9d20d3f8f054036_21	fill in the blank 9d20d3f8f054036_22	fill in the blank 9d20d3f8f054036_23	fill in the blank 9d20d3f8f054036_24
				fill in the blank 9d20d3f8f054036_25	fill in the blank 9d20d3f8f054036_26	fill in the blank 9d20d3f8f054036_27
Nov. 24				fill in the blank 9d20d3f8f054036_28	fill in the blank 9d20d3f8f054036_29	fill in the blank 9d20d3f8f054036_30	fill in the blank 9d20d3f8f054036_31	fill in the blank 9d20d3f8f054036_32	fill in the blank 9d20d3f8f054036_33
Nov. 30	fill in the blank 9d20d3f8f054036_34	fill in the blank 9d20d3f8f054036_35	fill in the blank 9d20d3f8f054036_36				fill in the blank 9d20d3f8f054036_37	fill in the blank 9d20d3f8f054036_38	fill in the blank 9d20d3f8f054036_39
							fill in the blank 9d20d3f8f054036_40	fill in the blank 9d20d3f8f054036_41	fill in the blank 9d20d3f8f054036_42
Nov. 30	Balances					fill in the blank 9d20d3f8f054036_43			fill in the blank 9d20d3f8f054036_44

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