Perpetual Inventory Using FIFO

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

November 1		Inventory	36 units at $79
10		Sale	23 units
15		Purchase	21 units at $84
20		Sale	19 units
24		Sale	11 units
30		Purchase	39 units at $87

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

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.

First-in, First-out Method DVD Players Quantity Cost of Good COST of ou Cost of Goods Sold Sold Unit Cost Sold Total Cost Date Quantity Purchased Purchases Purchases Total Cost Inventory Quantity Inventory Total Cost Unit Cost O o O U 100011 100 100001 000 Hoooll 1000 III II. II. 111 Nov 30 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method