Question 1

Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 49 units @ $53 10 Sale 34 units 64 units @ $56 15 20 Purchase Sale 36 units 24 Sale 9 units 30 Purchase 22 units @ $58 The business maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Portable Game Players Cost of Cost of Quantity Merchandise Merchandise Sold Unit Cost Sold Total Cost Quantity Purchases Purchases Date Purchased Unit Cost Total Sold Inventory Inventory Inventory Quantity Unit Cost Total Cost Unit Cost Total Cost Apr. Apr. 30 Apr. Balance 30 Chapter 7 Homework Assignment (part Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 2,400 units at $29 May 121,680 units May 10 May 20 1,200 units at $31 1,080 units at $33 May 14 1,440 units May 31 720 units a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold LIFO Method Prepaid Cell Phones Cost of Cost of Quantity Inventory Quantity Purchases Purchases Inventory Merchandise Date Merchandise Inventory ate Purchased Unit Cost Sold Total Cost Sold Unit Cost Sold Total Cost Quantity Unit Cost Total Cost May May 10 May May May 31 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first in, first-out method? Chapter 7 Homework Assignment (part Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 3 ,700 units at $31 May 10 May 20 1 1 ,850 units at $33 ,665 units at $35 May 12 May 14 May 31 2,590 units 2,220 units 1,110 units Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of merchandise 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 Merchandise Sold Unit Cost column and in the Inventory Unit Cost column. Schedule of Cost of Merchandise Sold FIFO Method Prepaid Cell Phones Cost of Cost of Purchases * Purchases Purchases Merchandise Merchandise Merchandise Inventory Inventory Inventory Unit Cost Total Cost Sold Quantity Sold Unit Cost Sold Total Cost Quantity Unit Cost Total Cost Dale Quantity Unit co Cost Fotchases Mostor May Balances