Perpetual Inventory Using FIFO

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

November 1		Inventory	68 units at $77
10		Sale	55 units
15		Purchase	34 units at $82
20		Sale	21 units
24		Sale	13 units
30		Purchase	29 units at $85

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

Question Content Area

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 d830b7f5f03c062_1	$fill in the blank d830b7f5f03c062_2	$fill in the blank d830b7f5f03c062_3
Nov. 10				fill in the blank d830b7f5f03c062_4	$fill in the blank d830b7f5f03c062_5	$fill in the blank d830b7f5f03c062_6	fill in the blank d830b7f5f03c062_7	fill in the blank d830b7f5f03c062_8	fill in the blank d830b7f5f03c062_9
Nov. 15	fill in the blank d830b7f5f03c062_10	$fill in the blank d830b7f5f03c062_11	$fill in the blank d830b7f5f03c062_12				fill in the blank d830b7f5f03c062_13	fill in the blank d830b7f5f03c062_14	fill in the blank d830b7f5f03c062_15
							fill in the blank d830b7f5f03c062_16	fill in the blank d830b7f5f03c062_17	fill in the blank d830b7f5f03c062_18
Nov. 20				fill in the blank d830b7f5f03c062_19	fill in the blank d830b7f5f03c062_20	fill in the blank d830b7f5f03c062_21	fill in the blank d830b7f5f03c062_22	fill in the blank d830b7f5f03c062_23	fill in the blank d830b7f5f03c062_24
				fill in the blank d830b7f5f03c062_25	fill in the blank d830b7f5f03c062_26	fill in the blank d830b7f5f03c062_27
Nov. 24				fill in the blank d830b7f5f03c062_28	fill in the blank d830b7f5f03c062_29	fill in the blank d830b7f5f03c062_30	fill in the blank d830b7f5f03c062_31	fill in the blank d830b7f5f03c062_32	fill in the blank d830b7f5f03c062_33
Nov. 30	fill in the blank d830b7f5f03c062_34	fill in the blank d830b7f5f03c062_35	fill in the blank d830b7f5f03c062_36				fill in the blank d830b7f5f03c062_37	fill in the blank d830b7f5f03c062_38	fill in the blank d830b7f5f03c062_39
							fill in the blank d830b7f5f03c062_40	fill in the blank d830b7f5f03c062_41	fill in the blank d830b7f5f03c062_42
Nov. 30	Balances					$fill in the blank d830b7f5f03c062_43			$fill in the blank d830b7f5f03c062_44

Question Content Area

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

HigherLower