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Perpetual Inventory Using FIFO

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

Inventory Purchases Sales

May $11,500$ units at $$24$ May $10750$ units at $$26$ May $121,050$ units

$20675$ units at $$2814900$ units

$31450$ 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

Date

Quantity

Purchased

Purchases

Unit

Cost

Purchases

Total

Cost Cost of

Merchandise

Sold

Quantity Cost of

Merchandise

Sold

Unit Cost Cost of

Merchandise

Sold

Total Cost

Inventory

Quantity

Inventory

Unit

Cost

Inventory

Total

Cost