Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory May 1 Purchases Sales 2,100 units at $21 May 10 1,050 units at $23 May 20 945 units at $25 May 12 May 14 May 31 1,470 units 1,260 units 630 units Assume that 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 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. Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Date Purchases Quantity Purchases Unit Cost Purchases Total Cost Cost of Merchandise Sold Quantity Cost of Merchandise Sold Unit Cost Total Cost Cost of Merchandise Inventory Sold Quantity May 1 May 10 May 12 May 14 May 20 0 00 00-0 Inventory Unit Cost 00000 00 1100000 00 0 00 Inventory Total Cost 0000000 Previous Next >