Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for portable DVD players are...
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Accounting
Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for portable DVD players are as follows:
Apr. 1
Inventory
69 units @ $54
10
Sale
58 units
15
Purchase
34 units @ $56
20
Sale
19 units
24
Sale
11 units
30
Purchase
34 units @ $58
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.
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