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**Perpetual Inventory Using FIFO** **Beginning Inventory, Purchases, and Sales for Item Copper:** - **March 1:** - Inventory: 450 units at $7 - **March 9:** - Sale: 390 units - **March 13:** - Purchase: 410 units at $8 - **March 25:** - Sale: 340 units **Task:** Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine: a. Cost of merchandise sold on March 25 b. Inventory on March 31 **Inputs:** - a. Cost of merchandise sold on March 25: $224 (incorrect) - b. Inventory on March 31: $0 (incorrect) **Feedback:** a. When the FIFO method is used, costs are included in the cost of merchandise sold in the order in which inventory is purchased, in terms of "layers." Determine how much inventory remains from each layer after each sale. b. The ending inventory is made up of the most recent purchases.

**Perpetual Inventory Using FIFO** **Beginning Inventory, Purchases, and Sales for Item Copper:** - **March 1:** - Inventory: 450 units at $7 - **March 9:** - Sale: 390 units - **March 13:** - Purchase: 410 units at $8 - **March 25:** - Sale: 340 units **Task:** Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine: a. Cost of merchandise sold on March 25 b. Inventory on March 31 **Inputs:** - a. Cost of merchandise sold on March 25: $224 (incorrect) - b. Inventory on March 31: $0 (incorrect) **Feedback:** a. When the FIFO method is used, costs are included in the cost of merchandise sold in the order in which inventory is purchased, in terms of "layers." Determine how much inventory remains from each layer after each sale. b. The ending inventory is made up of the most recent purchases.

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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**Perpetual Inventory Using FIFO** **Beginning Inventory, Purchases, and Sales for Item Copper:** - **March 1:** - Inventory: 450 units at $7 - **March 9:** - Sale: 390 units - **March 13:** - Purchase: 410 units at $8 - **March 25:** - Sale: 340 units **Task:** Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine: a. Cost of merchandise sold on March 25 b. Inventory on March 31 **Inputs:** - a. Cost of merchandise sold on March 25: $224 (incorrect) - b. Inventory on March 31: $0 (incorrect) **Feedback:** a. When the FIFO method is used, costs are included in the cost of merchandise sold in the order in which inventory is purchased, in terms of "layers." Determine how much inventory remains from each layer after each sale. b. The ending inventory is made up of the most recent purchases.
Transcribed Image Text:**Perpetual Inventory Using FIFO** **Beginning Inventory, Purchases, and Sales for Item Copper:** - **March 1:** - Inventory: 450 units at $7 - **March 9:** - Sale: 390 units - **March 13:** - Purchase: 410 units at $8 - **March 25:** - Sale: 340 units **Task:** Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine: a. Cost of merchandise sold on March 25 b. Inventory on March 31 **Inputs:** - a. Cost of merchandise sold on March 25: $224 (incorrect) - b. Inventory on March 31: $0 (incorrect) **Feedback:** a. When the FIFO method is used, costs are included in the cost of merchandise sold in the order in which inventory is purchased, in terms of "layers." Determine how much inventory remains from each layer after each sale. b. The ending inventory is made up of the most recent purchases.
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