Perpetual Inventory Using FIFO

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

November 1 Inventory 61 units at $74

10 Sale 41 units

15 Purchase 26 units at $78

20 Sale 29 units

24 Sale 11 units

30 Purchase 39 units at $82

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

Question Content Area

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.

Date Nov. 1 Nov. 10 Nov. 15 Nov. 20 Nov. 24 Nov. 30 Nov. 30 Cost of the Goods Sold Schedule First-in, First-out Method DVD Players Cost of Cost of Goods Goods Quantity Purchases Purchases Quantity Sold Purchased Unit Cost Total Cost Sold Sold Inventory Inventory Quantity Unit Cost Unit Total Cost Cost Balances 000 000 Inventory Total Cost 10000 000 000 00000 10000 000