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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. Cost of the Goods Sold Schedule First-in, First-out Method DVD Players Date Quantity Purchased Purchases Unit Cost Purchases 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                   Nov. 10                   Nov. 15                                       Nov. 20                                       Nov. 24                   Nov. 30                                       Nov. 30 Balances                 b.  Based upon the preceding data, would you expect the inventory to be higher or lower using the last-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. Cost of the Goods Sold Schedule First-in, First-out Method DVD Players Date Quantity Purchased Purchases Unit Cost Purchases 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                   Nov. 10                   Nov. 15                                       Nov. 20                                       Nov. 24                   Nov. 30                                       Nov. 30 Balances                 b.  Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Beginning inventory, purchases, and sales data for DVD players are as follows:

    November 1   Inventory 66 units at $42
    10   Sale 50 units
    15   Purchase 33 units at $44
    20   Sale 23 units
    24   Sale 19 units
    30   Purchase 40 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.

    Cost of the Goods Sold Schedule
    First-in, First-out Method
    DVD Players



    Date
    Quantity
    Purchased
    Purchases
    Unit Cost
    Purchases
    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                  
    Nov. 10                  
    Nov. 15                  
                       
    Nov. 20                  
                       
    Nov. 24                  
    Nov. 30                  
                       
    Nov. 30 Balances                

    b.  Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
     

  2.  
 
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