Question

eBook Show Me How Calculator Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable game players are as follows: Apr. 1 Inventory 36 units $56 30 units 10 Sale 15 Purchase 18 units $58 20 Sale 10 units 24 Sale 9 units 30 Purchase 24 units o $61 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. 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. 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 Un Cost column and in the Inventory Unit Cost column. Perpetual Inventory Account First-in, First-out Method Portable Game Players Quantity Cost of Merchandise Cost of Cost of Merchandise Merchandise Sold Sold Purchases Purchases Inventory Inventory < Previous Ne Check My Work 00 o to

Answer 1

1 What is FIFO (first-in-first out ) Method first -in- first out Commonly known as fi fo is an assest mangement and valuation method in which assest produced or acquired first are sold, used or disposed of first, for tax purposes flfo assumes that assests with the oldest Costs are included in the income statement's cost of goods sold, What is perpetual Inventory system Perpetual Inventory system is a method of accounting for inventory that records the sale or purchase of in- ventory immediately through the Point-of-sale sugestem and enterprise assest Management Software use of computerried

Perpetual Inventory Account First-in, first-out Methed Portable Game Players Purchase a uantiy , ost Per unit Date Quantity Purchased Purchese unit cost Total cost Total cost ICOGS Inventory per writ total Quantity cest cost 36 56 20 (6 April ! April-lo 336 30 56 1680 6 56 336 April - 15 18 1044 6 .56 (०५५ April 20 6 56 336 812 4 58 232 14 58 Abril-24 9 58 522 5 58 5 58 290 April-30 24 61 1964 24 61 1469 29 2770 1754 (ost), 228 2 508 119 42 49 Total (Cors) units)

Total cost of good seld (units) a 49 units To tal cost of goods sold ( Amount) 2770 29 units Total Ending Inventory (waits) Total Ending Inventory (Amount) a_1754
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