erpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory   Purchases   Sales   May 1 2,100 units at $29 May 10 1,050 units at $31 May 12 1,470 units            20 945 units at $33        14 1,260 units                31 630 units Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of 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. Schedule of Cost of Merchandise SoldFIFO MethodPrepaid Cell Phones

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:

Inventory   Purchases   Sales  
May 1 2,100 units at $29 May 10 1,050 units at $31 May 12 1,470 units
           20 945 units at $33        14 1,260 units
               31 630 units

Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of 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.

Schedule of Cost of Merchandise SoldFIFO MethodPrepaid Cell Phones





Date



Quantity
Purchased


Purchases
Unit
Cost


Purchases
Total
Cost
Cost of
Merchandise
Sold
Quantity
Cost of
Merchandise
Sold
Unit Cost
Cost of
Merchandise
Sold
Total Cost



Inventory
Quantity


Inventory
Unit
Cost


Inventory
Total
Cost
May 1             fill in the blank 1 $fill in the blank 2 $fill in the blank 3
May 10 fill in the blank 4 $fill in the blank 5 $fill in the blank 6       fill in the blank 7 fill in the blank 8 fill in the blank 9
              fill in the blank 10 fill in the blank 11 fill in the blank 12
May 12       fill in the blank 13 $fill in the blank 14 $fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18
              fill in the blank 19 fill in the blank 20 fill in the blank 21
May 14       fill in the blank 22 fill in the blank 23 fill in the blank 24      
        fill in the blank 25 fill in the blank 26 fill in the blank 27 fill in the blank 28 fill in the blank 29 fill in the blank 30
May 20 fill in the blank 31 fill in the blank 32 fill in the blank 33       fill in the blank 34 fill in the blank 35 fill in the blank 36
              fill in the blank 37 fill in the blank 38 fill in the blank 39
May 31       fill in the blank 40 fill in the blank 41 fill in the blank 42      
        fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 fill in the blank 47 fill in the blank 48
May 31 Balances         $fill in the blank 49     $fill in the blank 50
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