1. Perpetual Inventory Using FIFO

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

   Apr. 1		Inventory	41 units @ $89
   10		Sale	27 units
   15		Purchase	18 units @ $94
   20		Sale	18 units
   24		Sale	10 units
   30		Purchase	22 units @ $100

   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, presenting the data in the form illustrated in Exhibit 3.

   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 column.

   Cost of the Merchandise Sold Schedule
   First-in, First-out Method
   Portable DVD 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 bb9538fd5fd5fe2_1	$fill in the blank bb9538fd5fd5fe2_2	$fill in the blank bb9538fd5fd5fe2_3
   Apr. 10				fill in the blank bb9538fd5fd5fe2_4	$fill in the blank bb9538fd5fd5fe2_5	$fill in the blank bb9538fd5fd5fe2_6	fill in the blank bb9538fd5fd5fe2_7	fill in the blank bb9538fd5fd5fe2_8	fill in the blank bb9538fd5fd5fe2_9
   Apr. 15	fill in the blank bb9538fd5fd5fe2_10	$fill in the blank bb9538fd5fd5fe2_11	$fill in the blank bb9538fd5fd5fe2_12				fill in the blank bb9538fd5fd5fe2_13	fill in the blank bb9538fd5fd5fe2_14	fill in the blank bb9538fd5fd5fe2_15
   							fill in the blank bb9538fd5fd5fe2_16	fill in the blank bb9538fd5fd5fe2_17	fill in the blank bb9538fd5fd5fe2_18
   Apr. 20				fill in the blank bb9538fd5fd5fe2_19	fill in the blank bb9538fd5fd5fe2_20	fill in the blank bb9538fd5fd5fe2_21	fill in the blank bb9538fd5fd5fe2_22	fill in the blank bb9538fd5fd5fe2_23	fill in the blank bb9538fd5fd5fe2_24
   				fill in the blank bb9538fd5fd5fe2_25	fill in the blank bb9538fd5fd5fe2_26	fill in the blank bb9538fd5fd5fe2_27
   Apr. 24				fill in the blank bb9538fd5fd5fe2_28	fill in the blank bb9538fd5fd5fe2_29	fill in the blank bb9538fd5fd5fe2_30	fill in the blank bb9538fd5fd5fe2_31	fill in the blank bb9538fd5fd5fe2_32	fill in the blank bb9538fd5fd5fe2_33
   Apr. 30	fill in the blank bb9538fd5fd5fe2_34	fill in the blank bb9538fd5fd5fe2_35	fill in the blank bb9538fd5fd5fe2_36				fill in the blank bb9538fd5fd5fe2_37	fill in the blank bb9538fd5fd5fe2_38	fill in the blank bb9538fd5fd5fe2_39
   							fill in the blank bb9538fd5fd5fe2_40	fill in the blank bb9538fd5fd5fe2_41	fill in the blank bb9538fd5fd5fe2_42
   Apr. 30	Balances					$fill in the blank bb9538fd5fd5fe2_43			$fill in the blank bb9538fd5fd5fe2_44

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