Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: 60 units at $50 50 units 28 units at $53 14 units Nov. 1 Inventory 10 Sale 15 Purchase 20 Sale 24 Sale 10 units 30 Purchase 20 units at $56 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of 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. Date Nov. 1 Nov. 10 Nov. 15 First-in, First-out Method DVD Players Quantity Purchases Purchases Purchased Unit Cost Total Cost Check My Work Cost of Cost of Quantity Goods Sold Goods Sold Inventory Inventory Inventory Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Previous Next >
Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: 60 units at $50 50 units 28 units at $53 14 units Nov. 1 Inventory 10 Sale 15 Purchase 20 Sale 24 Sale 10 units 30 Purchase 20 units at $56 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of 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. Date Nov. 1 Nov. 10 Nov. 15 First-in, First-out Method DVD Players Quantity Purchases Purchases Purchased Unit Cost Total Cost Check My Work Cost of Cost of Quantity Goods Sold Goods Sold Inventory Inventory Inventory Sold Unit Cost Total Cost Quantity Unit Cost Total Cost Previous Next >
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 3E: Perpetual inventory using FIFO Beginning inventory, purchases, and sales data for DVD players are as...
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Question
![Nov. 10
Nov., 15
Nov. 20
Nov. 24
Nov. 30
U
Nov. 30 Balances
Feedback
3000 000
✓ Check My Work
Note that this exercise uses the perpetual inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory is
made up of the most recent purchases.
Feedback
3000 000
0000 0000
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
Lower
Check My Work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdac7294-121d-461c-b626-bf307098b471%2F2844967d-4900-4e61-8a89-ec56d624813d%2F9ya6h8b_processed.png&w=3840&q=75)
Transcribed Image Text:Nov. 10
Nov., 15
Nov. 20
Nov. 24
Nov. 30
U
Nov. 30 Balances
Feedback
3000 000
✓ Check My Work
Note that this exercise uses the perpetual inventory system. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory is
made up of the most recent purchases.
Feedback
3000 000
0000 0000
b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
Lower
Check My Work
![Perpetual inventory using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
60 units at $50
Nov. 1 Inventory
10 Sale
15 Purchase
20 Sale
24 Sale
30 Purchase
20 units at $56
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Date
Nov. 1
Nov. 10
Nov. 15
50 units
28 units at $53
14 units
a. Determine the cost of 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.
10 units
Check My Work
First-in, First-out Method
DVD Players
Cost of
Cost of
Quantity Goods Sold Goods Sold Inventory Inventory Inventory
Unit Cost Total Cost Quantity Unit Cost Total Cost
38E
Quantity Purchases Purchases
Purchased Unit Cost Total Cost Sold
Previous
t>
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdac7294-121d-461c-b626-bf307098b471%2F2844967d-4900-4e61-8a89-ec56d624813d%2Fi8bjp1e_processed.png&w=3840&q=75)
Transcribed Image Text:Perpetual inventory using FIFO
Beginning inventory, purchases, and sales data for DVD players are as follows:
60 units at $50
Nov. 1 Inventory
10 Sale
15 Purchase
20 Sale
24 Sale
30 Purchase
20 units at $56
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Date
Nov. 1
Nov. 10
Nov. 15
50 units
28 units at $53
14 units
a. Determine the cost of 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.
10 units
Check My Work
First-in, First-out Method
DVD Players
Cost of
Cost of
Quantity Goods Sold Goods Sold Inventory Inventory Inventory
Unit Cost Total Cost Quantity Unit Cost Total Cost
38E
Quantity Purchases Purchases
Purchased Unit Cost Total Cost Sold
Previous
t>
Next
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