Perpetual Inventory UsingFIFO

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

InventoryPurchasesSalesDec. 11) 20 units at $37 Dec. 10) 60 units at $39 Dec. 12) 84 unitsDec. 20) 54 units at $41 Dec. 14 ) 72 unitsDec. 31 ) 36 units

Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods 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 Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Schedule of Cost of Goods Sold