Perpetual Inventory Using FIFO

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

Apr. 1		Inventory	65 units @ $78
10		Sale	45 units
15		Purchase	36 units @ $83
20		Sale	29 units
24		Sale	14 units
30		Purchase	37 units @ $87

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

Question Content Area

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. 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.

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: 65 units @ $78 45 units 36 units @ $83 29 units 14 units 37 units @ $87 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Apr. 1 10 15 20 24 30 Inventory Sale Purchase Sale Sale Purchase 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. 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. Date Apr. 1 Apr. 10 Apr. 15 Apr. 20 Apr. 24 Apr. 30 Quantity Purchased Apr. 30 Balances Purchases Purchases Unit Total Cost Cost Perpetual Inventory Account First-in, First-out Method Portable Game Players Quantity Cost of Merchandise Sold Cost of Cost of Merchandise Merchandise Sold Sold Unit Cost Total Cost Inventory Inventory Total Cost Inventory Unit Quantity Cost