Beginning inventory, purchases, and sales data for portable game players are as follows: 66 units $46 © 47 units 32 units @ $48 10 15 20 24 30 Quantity Date Purchased Apr. 1 Apr. 10 Apr. 15 Apr. 20 24 units 15 units 37 units $50 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Apr. 24 Apr. 30 U Inventory Sale a. 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. 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. Apr. 30 Balances Purchase Sale Sale Purchase Quantity Cost of Purchases Purchases Merchandise Total Unit Sold Cost Cost 0 Perpetual Inventory Account First-in, First-out Method Portable Game Players 0 000 0 Cost of Cost of Merchandise Merchandise Sold Sold Total Cost Unit Cost 8 Inventory Quantity Inventory Inventory Total Unit Cost Q000 000 Cost b. Based upon the preceding data, would you expect the ending inventory to be higher or lower using the last-in, first-out method?
Beginning inventory, purchases, and sales data for portable game players are as follows: 66 units $46 © 47 units 32 units @ $48 10 15 20 24 30 Quantity Date Purchased Apr. 1 Apr. 10 Apr. 15 Apr. 20 24 units 15 units 37 units $50 The business maintains a perpetual inventory system, costing by the first-in, first-out method. Apr. 24 Apr. 30 U Inventory Sale a. 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. 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. Apr. 30 Balances Purchase Sale Sale Purchase Quantity Cost of Purchases Purchases Merchandise Total Unit Sold Cost Cost 0 Perpetual Inventory Account First-in, First-out Method Portable Game Players 0 000 0 Cost of Cost of Merchandise Merchandise Sold Sold Total Cost Unit Cost 8 Inventory Quantity Inventory Inventory Total Unit Cost Q000 000 Cost b. Based upon the preceding data, would you expect the ending inventory to be higher or lower using the last-in, first-out method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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