Question

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are as follows: Apr. 1 Inventory 56 units @ $74 Sale 46 units Purchase 31 units @ $78 Sale 18 units Sale 11 units Purchase 27 units @ $82 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. a. 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. Quantity Purchased Purchases Unit Cost Date Apr. 1 Cost of the Merchandise Sold Schedule First-in, First-out Method Portable DVD Players Purchases Total Cost Quantity Cost of Merchandise Sold Cost of Merchandise Sold Unit Cost Cost of Merchandise Sold Total Cost Inventory Quantity 56 $ 74 $ 3,404 $ 2,418 Inventory Unit Cost $ 74 → Inventory Total Cost $ 4,144 740 Apr. 10 46 74 Apr. 15 31 $ 78 ✓ 78 78 740 2,418 2,028 Apr. 20 10 74 → 740 390 15 x 111 78 78 858 x Apr. 24 Apr. 30 1,170 936 27 82 78 78 82 → 2,214 2,214 Apr. 30 Balances $5,392 x $ 14,390

Answer 1

	Quantity purchased	Unit cost	Total cost	Quantity sold	Unit cost	Total cost	Inventory quantity	Unit cost	Total cost
Apr 1							56	74	4144
Apr 10				46	74	3404	10	74	740
Apr 15	31	78	2418				10	74	740
							31	78	2418
Apr 20				10	74	740	23	78	1794
				8	78	624
Apr 24				11	78	858	12	78	936
Apr 30	27	82	2214				12	78	936
							27	82	2214
Apr 30 Balances						5626			3150