Question

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

November 1		Inventory	56 units at $41
10		Sale	43 units
15		Purchase	31 units at $43
20		Sale	19 units
24		Sale	19 units
30		Purchase	37 units at $46

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the goods 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 Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

November 1		Inventory	56 units at $41
10		Sale	43 units
15		Purchase	31 units at $43
20		Sale	19 units
24		Sale	19 units
30		Purchase	37 units at $46

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the goods 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 Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Answer 1

Date Purchases Cost of maerchandise Sold Inventory Quantity Unit Cost Total cost Quantity Unit Cost Total cost Quantity Unit Cost Total cost November. 1 56 $ 41 $ 2.296 November. 101 43 $ 41 $ 1,763 13 $ 41 $ 533 November 151 31 $ 43 $ 1,333 13 $ 41 $ 533 311 $ 43 $ 1,333 November 201 131 $ 41 $ 533 25 $ 43 $ 1,075 6 $ 43 $ 258 November 24 191 $ 43 $ 817 6 $ 43 $ 258 November. 301 371 $ 46 $ 1,702 6 $ 43 $ 258 371 $ 46 $ 1.702 Totals $ 3.371 $ 1,960