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:
June 1
Inventory
74 units @ $78
6
Sale
55 units
14
Purchase
30 units @ $81
19
Sale
27 units
25
Sale
14 units
30
Purchase
25 units @ $86
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 4.
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.
Date
Quantity Purchased
Purchases Unit Cost
Purchases total cost
Quantity sold
Cost of merchandise sold unit cost
Cost of merchandise sold total cost
Inventory quantity
Inventory unit cost
Inventory total cost
June 1
June 6
June 14
June 19
June 25
June 30
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