Question

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 50 units at $41 Inventory Sale 34 units Purchase 20 units at $43 23 units Sale Sale 9 units 30 Purchase 34 units at $45 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 cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Cost of the Goods Sold Schedule First-in, First-out Method DVD Players Cost of Cost of Quantity Purchases Purchases Quantity Goods Sold Goods Sold Inventory Inventory Inventory Purchased Unit Cost Total Cost Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Date Nov. 1 Nov. 10 Nov. 20 Nov. 24 Nov. 30 O A

Answer 1

A)

Cost of Goods sold
FIFO Method- DVD Players
Date	Quantity Purchase	Purchase unit cost	Purchase total cost	Quantity Sold	Cost of Goods sold unit cost	Cost of Goods sold total cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Nov 1							50	41	2050
Nov 10				34	41	1394	16	41	656
Nov 15	20	43	860				36	42.11	1516
Nov 20				16	41	656	13	43	559
				7	43	301
Nov 24				9	43	387	4	43	172
Nov 30	34	45	1530				38	44.78	1702

B) If the company follows last in first out method then the inventory at the end of the month will be amounting Rs 1694- (4 units@ 41 per unit & 34 unit@ 45 per unit). So cist of inventory would be lower if company uses LIFO method.