Perpetual Inventory Using FIFO

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

Apr. 1		Inventory	45 units @ $46
10		Sale	38 units
15		Purchase	24 units @ $48
20		Sale	14 units
24		Sale	7 units
30		Purchase	23 units @ $51

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 Account First-in, First-out Method Portable Game Players

Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Cost of Merchandise Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Apr. 1							fill in the blank c3481f09603d009_1	$fill in the blank c3481f09603d009_2	$fill in the blank c3481f09603d009_3
Apr. 10				fill in the blank c3481f09603d009_4	$fill in the blank c3481f09603d009_5	$fill in the blank c3481f09603d009_6	fill in the blank c3481f09603d009_7	fill in the blank c3481f09603d009_8	fill in the blank c3481f09603d009_9
Apr. 15	fill in the blank c3481f09603d009_10	$fill in the blank c3481f09603d009_11	$fill in the blank c3481f09603d009_12				fill in the blank c3481f09603d009_13	fill in the blank c3481f09603d009_14	fill in the blank c3481f09603d009_15
							fill in the blank c3481f09603d009_16	fill in the blank c3481f09603d009_17	fill in the blank c3481f09603d009_18
Apr. 20				fill in the blank c3481f09603d009_19	fill in the blank c3481f09603d009_20	fill in the blank c3481f09603d009_21	fill in the blank c3481f09603d009_22	fill in the blank c3481f09603d009_23	fill in the blank c3481f09603d009_24
				fill in the blank c3481f09603d009_25	fill in the blank c3481f09603d009_26	fill in the blank c3481f09603d009_27
Apr. 24				fill in the blank c3481f09603d009_28	fill in the blank c3481f09603d009_29	fill in the blank c3481f09603d009_30	fill in the blank c3481f09603d009_31	fill in the blank c3481f09603d009_32	fill in the blank c3481f09603d009_33
Apr. 30	fill in the blank c3481f09603d009_34	fill in the blank c3481f09603d009_35	fill in the blank c3481f09603d009_36				fill in the blank c3481f09603d009_37	fill in the blank c3481f09603d009_38	fill in the blank c3481f09603d009_39
							fill in the blank c3481f09603d009_40	fill in the blank c3481f09603d009_41	fill in the blank c3481f09603d009_42
Apr. 30	Balances					$fill in the blank c3481f09603d009_43			$fill in the blank c3481f09603d009_44

Question Content Area

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

Higher/Lower