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Perpetual inventory using FIFO The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,100 units at $39 Apr. 19 2,700 units June 30 Sept. 2 Nov. 15 Date 4,300 units at $45 5,000 units 1,900 units at $48 The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present 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. FIFO Method Cost of Goods Sold Cost of Goods Sold Cost of Goods Sold Quantity Unit Cost Total Cost Jan. 1 Apr. 19 June 30 June 30 Sept. 2 Sept. 2 Nov. 15 Nov. 15 Sale Dec. 31 Purchase Sale Purchase Purchases Quantity 4,300 Balances Purchases Unit Cost 45 Purchases Total Cost 193,500 2,700 1,400 3,600 39 39 45 105,300 54,600 162,000 2,600 X Inventory Quantity 4,100 1,400 1,400 4,300 700 700 1,900 Inventory Unit Cost 39 39 39 45 45 45 48 Inventory Total Cost $ 159,900 54,600 54,600 193,500 31,500 31,500 91,200 122,700

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