Word Problem for Perpetual Inventory Using FIFO

A business sells prepaid cell phones and uses a perpetual inventory system with the FIFO $($First$-$In$,$ First$-$Out$)$ method to track its inventory. Below is the inventory and sales data for the month of May:

May $1$st: The business begins with an inventory of $1,900$ units of prepaid cell phones at a unit cost of $$31$ each.

May $10$th: The business purchases an additional $950$ units at $$33$ each.

May $12$th: The business sells $1,330$ units of prepaid cell phones.

May $14$th: The business sells an additional $1,140$ units.

May $20$th: The business purchases $855$ units at $$35$ each.

May $31$st: The business sells $570$ units.

Assume the business continues to sell units of prepaid cell phones following the FIFO method, meaning that the earliest purchased units are sold first. The business wants to determine the Cost of Merchandise Sold $($COGS$)$ for each sale and calculate the remaining inventory balance after each sale.

Problem:

Using the FIFO method, calculate the Cost of Merchandise Sold for each sale and the inventory balance after each sale.

The units with the LOWER unit cost will be used first in the Cost of Merchandise Sold column and in the Inventory column.

Present your results for the Cost of Merchandise Sold, Inventory Quantity, Inventory Unit Cost, and Inventory Total Cost after each sale.

Use the following steps:

Calculate the Cost of Merchandise Sold $($COGS$)$ for each sale, using the FIFO method.

Determine the remaining inventory, after the sale, based on the units sold and the unit costs of remaining inventory.

By the end of the month, you should have the following information for the business:

The Cost of Merchandise Sold $($total cost of sold units for each sale$).$

The Inventory Quantity $($remaining units in inventory after each sale$).$

The Inventory Unit Cost $($cost per unit of the remaining inventory$).$

The Inventory Total Cost $($total value of the remaining inventory$).$

Make sure to calculate this for May $10$th$,$ May $12$th$,$ May $14$th$,$ May $20$th$,$ and May $31$st$.$