Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for July are as follows:

Inventory		Purchases		Sales
July 1	4,100 units at $26	July 10	2,050 units at $28	July 12	2,870 units
		July 20	1,845 units at $30	July 14	2,460 units
				July 31	1,230 units

Assuming that the perpetual inventory system is used, costing by the FIFO method, determine the cost of the merchandise sold for each sale and the inventory balance after each sale.

Schedule of Cost of Merchandise Sold
FIFO Method
Prepaid Cell Phones
Date	Purchases Quantity	Purchases Unit Cost	Purchases Total Cost	Cost of Merchandise Sold Quantity	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
July 1							4100	$26	$106600
July 10		$	$
July 12					$	$
July 14
July 20
July 31
July 31	Balances					$			$

Answer rating: 100% (QA)

Solution To determine the cost of merchandise sold for each sale and the inventory balance after each sale using the FIFO method we need to follow the following steps 1 Calculate the cost of the merch... View the full answer