Perpetual Inventory Using FIFO

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

Apr. 1		Inventory	44 units @ $65
10		Sale	37 units
15		Purchase	24 units @ $68
20		Sale	14 units
24		Sale	9 units
30		Purchase	34 units @ $71

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	fill	fill
Apr. 10				fill	fill	fill	fill	fill	fill
Apr. 15	fill	fill	fill				fill	fill	fill
							fill	fill	fill
Apr. 20				fill	fill	fill	fill	fill	fill
				fill	fill	fill
Apr. 24				fill	fill	fill	fill	fill	fill
Apr. 30	fill	fill	fill				fill	fill	fill
							fill	fill	fill
Apr. 30	Balances					fill			fill

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?