Perpetual Inventory UsingFIFO

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

November 1Inventory41 units at $7410Sale34 units15Purchase23 units at $7720Sale13 units24Sale10 units30Purchase20 units at $81

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 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.

Cost of the Goods Sold ScheduleFirst-in, First-out MethodDVD Players