Perpetual Inventory Using FIFO

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

Apr. 1		Inventory	62 units @ $72
10		Sale	49 units
15		Purchase	28 units @ $75
20		Sale	19 units
24		Sale	10 units
30		Purchase	39 units @ $80

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 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 Purchases Unit Cost Quantity Cost of Merchandise Sold Purchases Total Cost Quantity Date Purchased Cost of Cost of Merchandise Merchandise Sold Sold Unit Cost Total Cost Inventory Quantity Inventory Inventory Unit Total Cost Cost Apr. 1 Apr. 10 3,528 Apr. 15 28 75 $ 2,100 Apr. 20 111 111 111 I 1101 III 111 1111 111 Apr. 24 Apr. 30 39 80 3,120 Apr. 30 Balances O