Perpetual Inventory Using FIFO

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

Apr. 1		Inventory	80 units @ $90
10		Sale	54 units
15		Purchase	45 units @ $95
20		Sale	32 units
24		Sale	23 units
30		Purchase	23 units @ $99

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

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 inExhibit 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 5baeaefe8fe7fd5_1	$fill in the blank 5baeaefe8fe7fd5_2	$fill in the blank 5baeaefe8fe7fd5_3
Apr. 10				fill in the blank 5baeaefe8fe7fd5_4	$fill in the blank 5baeaefe8fe7fd5_5	$fill in the blank 5baeaefe8fe7fd5_6	fill in the blank 5baeaefe8fe7fd5_7	fill in the blank 5baeaefe8fe7fd5_8	fill in the blank 5baeaefe8fe7fd5_9
Apr. 15	fill in the blank 5baeaefe8fe7fd5_10	$fill in the blank 5baeaefe8fe7fd5_11	$fill in the blank 5baeaefe8fe7fd5_12				fill in the blank 5baeaefe8fe7fd5_13	fill in the blank 5baeaefe8fe7fd5_14	fill in the blank 5baeaefe8fe7fd5_15
							fill in the blank 5baeaefe8fe7fd5_16	fill in the blank 5baeaefe8fe7fd5_17	fill in the blank 5baeaefe8fe7fd5_18
Apr. 20				fill in the blank 5baeaefe8fe7fd5_19	fill in the blank 5baeaefe8fe7fd5_20	fill in the blank 5baeaefe8fe7fd5_21	fill in the blank 5baeaefe8fe7fd5_22	fill in the blank 5baeaefe8fe7fd5_23	fill in the blank 5baeaefe8fe7fd5_24
				fill in the blank 5baeaefe8fe7fd5_25	fill in the blank 5baeaefe8fe7fd5_26	fill in the blank 5baeaefe8fe7fd5_27
Apr. 24				fill in the blank 5baeaefe8fe7fd5_28	fill in the blank 5baeaefe8fe7fd5_29	fill in the blank 5baeaefe8fe7fd5_30	fill in the blank 5baeaefe8fe7fd5_31	fill in the blank 5baeaefe8fe7fd5_32	fill in the blank 5baeaefe8fe7fd5_33
Apr. 30	fill in the blank 5baeaefe8fe7fd5_34	fill in the blank 5baeaefe8fe7fd5_35	fill in the blank 5baeaefe8fe7fd5_36				fill in the blank 5baeaefe8fe7fd5_37	fill in the blank 5baeaefe8fe7fd5_38	fill in the blank 5baeaefe8fe7fd5_39
							fill in the blank 5baeaefe8fe7fd5_40	fill in the blank 5baeaefe8fe7fd5_41	fill in the blank 5baeaefe8fe7fd5_42
Apr. 30	Balances					$fill in the blank 5baeaefe8fe7fd5_43			$fill in the blank 5baeaefe8fe7fd5_44

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

HigherLower